Happy Thursday, advisors!
In today’s newsletter, David Lawant, head of research at Anchorage Digital, discusses the changing role of cryptocurrencies in 401(k) plans, as regulatory clarity is about to open up investments.
Then, on Ask an Expert, Kevin Tam answers questions about cryptocurrency adoption around the world by analyzing recent 13F filings.
Happy reading.
Modernizing Savings: The Past, Present, and Future of Cryptocurrencies in 401(k) Plans
The United States retirement system is about to reach a structural inflection point. For more than a decade, the $10 trillion 401(k) market remained insulated from crypto assets due to regulatory ambiguity and litigation concerns. However, a decisive shift in federal policy is transforming 2026 into the year of integration, which in the long term will move cryptocurrencies from the periphery to the institutional core of the US retirement system.
The regulatory change from “extreme care” to “neutrality of principles” and “democratization of access.”
The Department of Labor (DOL) is responsible for ensuring that ERISA, the 1974 federal law that establishes minimum standards for most voluntarily established health and retirement plans in private industry, is at the epicenter of this problem. In March 2022, it issued Compliance Assistance Release No. 2022-01. This statement created a de facto ban on crypto assets in retirement plans by requiring fiduciaries to exercise “extreme care” and threatening targeted investigations for those who interact with crypto assets.
On May 28, 2025, the DOL formally abandoned the “extreme care” standard with Compliance Assistance Release No. 2025-01. This statement formally rescinded the restrictive 2022 guidance, stating that the previous position had “deviated from the requirements of ERISA” and the department’s “historically neutral and principled approach.” The rescission restored the legal standard set by the Supreme Court holding that fiduciaries must act prudently based on a contextual assessment of risk and return, rather than adhering to categorical prohibitions on specific asset classes.
But the real catalyst came with President Donald Trump’s Executive Order 14330, signed on August 7, 2025. Titled “Democratize Access to Alternative Assets for 401(k) Investors,” this directive fundamentally redefined the government’s stance, moving from a warning tone to an affirmative mandate to facilitate access to “alternative assets,” which the order explicitly defined to include crypto assets among more established classes like private equity and real estate.
Upcoming DOL Guidance on Alternative Assets and What Adoption Might Look Like
Last January, the DOL introduced a proposed rule that would clarify its position on alternative assets and the appropriate fiduciary process. The document is not yet public and is still at the Office of Management and Budget (OMB), but since the White House’s 180-day deadline has already expired, it is expected to be released for public comment very soon.
Specifically for cryptocurrencies, the focus depends on the design of the next fiat safe harbor. This regulatory “checklist” is intended to exempt fiduciaries from liability for investment losses, provided they meet specific standards. Its critical pillars are expected to include qualified custody requirements, liquidity restrictions, and limits on portfolio allocation.
However, even after the major regulatory hurdle is cleared, widespread adoption will likely unfold more as a glacial shift over several years than a speculative spark.
The evolution from high-friction self-directed brokerage accounts (SDBAs) to seamless inclusion in mainstream menus and target-date funds is based on countless critical factors, including fiat acceptance and platform compatibility. Investment consultants such as Mercer, Aon and Willis Towers Watson act as key gatekeepers and, although they tend to proceed cautiously, the allocation of alternatives to investments is emerging as a priority issue. At the same time, the industry must close the gap between legacy “mutual fund plumbing” and digital asset infrastructure to ensure 401(k) platforms can seamlessly handle the new asset class.
Still, the 401(k) market is critical not only because of its large size but also because its unique flow profile acts as a mechanical buffer against volatility. Because retirement participants are price inelastic, their biweekly non-discretionary payroll contributions provide a stabilizing supply that persists regardless of short-term market sentiment. This effect is reinforced by managed accounts and target-date funds (TDFs), which institutionalize “dip buying” by automatically purchasing assets during market corrections to restore target weights.
Unlike the high-speed debut of spot exchange-traded funds (ETFs), the move to retirement accounts will likely be a cumulative wave that will unfold over years. However, the sheer size and unique stability of this investor base makes 2026 the year when crypto’s role in American savings becomes an undeniable and permanent fixture.
– David Lawant, Head of Research, Anchorage Digital
ask an expert
Q: What do Norges Bank and foreign hedge funds have in common?
Foreign hedge funds from Hong Kong and the United Kingdom are showing a huge appetite for regulated exposure, largely accumulating spot bitcoin ETFs to build their portfolios. Laurore Ltd. has recently emerged with a 100% IBIT portfolio concentration.
In pension fund growth, South Korea’s National Pension Service increased its exposure to MSTR to $93.6 million, far surpassing the $3.5 million position held by Investment Management of Ontario (IMCO).
In the fourth quarter, the Central Bank of Norway opened a new MSTR position valued at $536 million.
Q: Is Canada’s bet on bitcoin starting to cool off?
National Bank of Canada reduced its stake in MSTR by 51% in the fourth quarter of 2025, reducing the stock simultaneously with the share price decline. The bank’s position fell from $659 million to $152 million this quarter. Notably, the bank also holds $52.4 million in put options on MSTR.
Q: What does the global regulator’s roadmap tell us about bitcoin’s trajectory to 2026 and beyond?
The direction is towards legalization. Regulatory timelines show a coordinated global rollout with MiCAR implemented across the EU in June 2025, the GENUIS Act signed in the US in July 2025, and Hong Kong, Singapore and the United Arab Emirates all establishing formal digital asset frameworks. Looking ahead, Canadian securities administrators are expected to propose amendments allowing for broader tokenization of securities and ETFs in the fourth quarter of 2026.
Driven by regulatory clarity and continued adoption of digital asset ETFs, institutional investors view them as strategic assets for diversification and long-term growth.
– Kevin Tam, Digital Asset Research Specialist
