Happy Thursday, advisors!
In today’s newsletter, David Lawant, head of research at Anchorage Digital reviews crypto’s evolving role in 401(k)s as regulatory clarity is poised to open up investment.
Then, in Ask an Expert, Kevin Tam answers questions about crypto adoption around the world and looks at the latest 13F filings.
Good reading.
Modernizing the Nest Egg: The Past, Present, and Future of Crypto in 401(k) Plans
The US pension system is reaching a structural tipping point. For more than a decade, the $10 trillion 401(k) market remained insulated from crypto-assets due to regulatory ambiguities and litigation. However, a crucial shift in federal policy is turning 2026 into the year of integration, which will eventually move crypto from the periphery into the institutional core of the US pension system.
The regulatory shift from “extreme care” to “principle neutrality” to “democratization of access.”
The Department of Labor (DOL) is responsible for ensuring that ERISA, the 1974 federal law that sets minimum standards for most voluntary private industry pension and health plans, is at the center of this issue. In March 2022, it issued Compliance Assistance Release No. 2022-01. This release created a de facto ban on cryptoassets in pension plans by mandating that trustees exercise “extreme care” and threatening targeted investigations of those dealing with cryptoassets.
On May 28, 2025, the DOL formally abandoned the “extreme care” standard with Compliance Assistance Release No. 2025-01. That release formally rescinded the restrictive 2022 guidance, stating that the previous position had “departed from the requirements of ERISA” and the department’s “historically neutral, principles-based approach.” The repeal re-established the legal standard set by the Supreme Court, which states that trustees must act prudently based on a contextual assessment of risk and return rather than adhering to categorical prohibitions against specific asset classes.
But the real catalyst came with President Donald Trump’s Executive Order 14330, signed on August 7, 2025. Titled “Democratizing Access to Alternative Assets for 401(k) Investors,” this directive fundamentally redefined the government’s position, shifting from a tone of warning to an affirmative mandate to facilitate access to assets that expressly include “enabled” more established classes such as private equity and real estate.
Upcoming DOL guidance on alternative assets and what adoption could look like
In January, the DOL submitted a proposed rule that would clarify its position on alternative assets and the appropriate trust process. The document is not public yet and still sits with the Office of Management and Budget (OMB), but given that the 180-day White House deadline has already passed, it is expected to be released for public comment fairly soon.
For crypto specifically, attention depends on the design of the upcoming fiduciary safe harbor. This regulatory ‘checklist’ aims to immunize trustees from liability for investment losses, provided specific standards are met. Its critical pillars are expected to include qualified custody requirements, liquidity constraints and portfolio allocation caps.
Even after the major regulatory hurdle is cleared, widespread adoption is likely to unfold more akin to an ice shift over several years than a speculative spark.
The evolution from high-friction Self-Directed Brokerage Accounts (SDBAs) to seamless inclusion in core menus and Target Date Funds is dependent on myriad critical factors, including fiduciary buy-in and platform compatibility. Investment consultants such as Mercer, Aon and Willis Towers Watson act as critical gatekeepers, and while they tend to move cautiously, allocation to alternatives emerges as a top-of-mind issue. At the same time, the industry must bridge legacy ‘mutual trust 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 sheer size, but also because of its unique flow profile that acts as a mechanical volatility dampener. Because retiree participants are price inelastic, their bi-weekly, non-discretionary salary contribution provides a stabilizing proposition that continues regardless of short-term market sentiment. This effect is amplified by managed accounts and target-date funds (TDFs), which institutionalize “dip buying” by automatically buying assets during market corrections to restore target weights.
Unlike the high-velocity debut of spot exchange-traded funds (ETFs), the transition to retirement accounts is likely to be an accumulative wave that will build over years. Still, the sheer size and exceptional stability of this investor base make 2026 the year crypto’s role in the US nest egg became an undeniable, permanent fixture.
– David Lawant, Head of Research, Anchorage Digital
Ask an expert
Q: What do Norges Bank and overseas hedge funds have in common?
Overseas hedge funds from Hong Kong and the UK are showing a massive appetite for regulated exposure and are heavily accumulating spot bitcoin ETFs to build their portfolios. Laurare Ltd. has recently emerged with a 100% portfolio concentration IBIT.
In pension fund growth, South Korea’s National Pension Service increased its MSTR exposure to $93.6 million, far exceeding the $3.5 million position held by Investment Management of Ontario (IMCO).
In the 4th quarter, Norway’s central bank opened a new position on MSTR worth $536 million.
Q: Is Canada’s bitcoin betting starting to cool off?
National Bank of Canada reduced its stake in MSTR by 51% in 2025Q4, which reduced the stock along with the share price decline. The bank’s position fell from $659 million to $152 million this quarter. Notably, the bank also has $52.4 million in put options on MSTR.
Q: What does the global regulator’s roadmap tell us about bitcoin’s trajectory into 2026 and beyond?
The direction is towards legalization. Regulatory timelines show a coordinated global build-out with MiCAR implemented across the EU in June 2025, the GENUIS Act signed in the US in July 2025, and HK, Singapore and the UAE all establishing formal frameworks for digital assets. Looking ahead, Canadian securities administrators are expected to propose changes enabling broader tokenization of securities and ETFs in Q4 2026.
Driven by regulatory clarity and the continued adoption of digital asset ETFs, institutional investors see them as strategic assets for diversification and long-term growth.
– Kevin Tam, digital asset research specialist
