Why Employers Are Still Hesitant to Add Crypto to 401(k)s

While interest in adding cryptocurrency to 401(k) plans is growing, most employers remain cautious. Recent signals from Washington removed explicit warnings but stopped short of endorsing crypto, leaving plan sponsors responsible for managing the risk. As a result, crypto is unlikely to appear in standard 401(k) lineups anytime soon, aside from limited access through self-directed brokerage accounts.

In a recent article, Jerry Cicalese emphasizes that fiduciary responsibility is the main reason adoption is moving slowly. He points to ERISA’s “prudent man” standard, which requires employers to act solely in participants’ best interests and carefully manage risk, cost, and oversight. The question is: "Just because we can add this, should we?"

Looking ahead, Cicalese believes crypto may eventually play a role in retirement plans, but not as a standalone option in core menus. He sees a more likely path through professionally managed or personalized accounts, while predicting crypto is still five to 10 years away from broad 401(k) inclusion. 

Interested in learning more? Read the full MarketWatch article here.