Crypto in 401(k) Plans and the Mined in America Act: Two Major U.S. Legislative Pushes

The U.S. Department of Labor has unveiled new guidance that would allow 401(k) retirement plans to hold cryptocurrencies and other alternative assets — while on Capitol Hill, senators have introduced sweeping legislation to overhaul domestic bitcoin mining and legally anchor a strategic bitcoin reserve.

401(k) Plans Get a Crypto-Friendly Overhaul

The Labor Department's new framework lifts restrictions that have effectively kept digital assets out of retirement portfolios. Under the proposed rules, fiduciaries will be judged on the quality of their due diligence process — covering fees, liquidity, and risk — rather than on a fund's actual returns. The change creates a "safe harbor" concept that shields fund managers from litigation when adding bitcoin, real estate, or other non-traditional instruments to retirement plans.

The guidance formally reverses 2022 guidance that cautioned against crypto in 401(k) accounts due to high volatility. Deputy Secretary of Labor Keith Sonderling stated that the department intends to remain neutral and will not designate preferred asset classes.

Labor Secretary Lori Chavez-DeRemer argued that diversification fosters innovation and that digital assets can serve as an inflation hedge while boosting long-term returns for younger investors. The SEC and the Treasury Department were also involved in drafting the initiative.

Mined in America Act: Bitcoin Reserve and Hardware Independence

Senators Bill Cassidy and Cynthia Lummis introduced the Mined in America Act, targeting a structural vulnerability in the U.S. crypto industry: while the country controls roughly 38% of global bitcoin hashrate, approximately 97% of specialized mining hardware is manufactured by Chinese firms, including Bitmain and MicroBT. The bill's sponsors describe this dependency as a threat to national and economic security.

The Department of Commerce would establish a voluntary Mined in America certification for data centers and mining pools that meet defined security standards. Certified participants would be required to phase out foreign equipment by the end of the decade. The National Institute of Standards and Technology would oversee efforts to close the hardware gap, with support for domestic manufacturers folded into existing federal programs at no additional cost.

Why This Matters for the Industry

The legislation frames bitcoin mining as a tool for grid management. Certified miners would gain access to federal funding for projects that absorb surplus renewable energy, help balance grid load, and utilize methane from landfills and oil fields. The bill has already received backing from advocacy group Satoshi Action Fund.

Beyond mining, the Mined in America Act codifies a strategic bitcoin reserve held by the Treasury Department, formalizing an executive order signed by President Donald Trump. A "budget-neutral" mechanism would fund reserve purchases using proceeds from staking rewards and airdrops tied to other government-seized digital assets.

A tax incentive rounds out the package: certified U.S. miners would be able to sell freshly mined bitcoin directly to the government in exchange for a capital gains tax exemption — a structure designed to grow the reserve at a discount to market prices.