The U.S. Department of Labor has proposed a rule that could open 401(k) retirement plans to cryptocurrencies and other alternative assets, potentially unlocking up to $12 trillion in retirement capital for digital asset markets. The proposal, stemming from a Trump-era executive order, doesn't explicitly approve crypto but establishes a 'safe harbor' for plan fiduciaries who follow a defined process for evaluating investments based on performance, fees, liquidity, and complexity. This aims to reduce legal risks that have previously deterred 401(k) administrators from including such assets. While the rule is asset-class neutral, it signals a significant shift in policy, potentially leading to increased institutional investment in crypto. Concerns remain regarding the volatility and complexity of digital assets within retirement portfolios, and the proposal is now subject to a 60-day public comment period. Google research also suggests quantum computing poses a growing threat to current crypto security, potentially requiring fewer qubits than previously estimated to crack blockchain cryptography.
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