The proposed new regulation by the U.S. Department of Labor has been approved by the White House, which will determine whether retirement funds can invest in cryptocurrencies.

Mars Finance reports that on March 26, the U.S. Department of Labor’s proposed rule aimed at changing investment options in the $10 trillion 401(k) market has passed regulatory review by the White House, bringing it one step closer to official release. The Office of Information and Regulatory Affairs (OIRA) completed its review of the rule on March 24, paving the way for the Department of Labor to formally publish the proposal in the coming weeks. If finalized, the rule will revise the fiduciary guidance for plans covered under the Employee Retirement Income Security Act (ERISA), potentially allowing plan sponsors to include cryptocurrencies and private equity as designated investment options.

The proposal was introduced following an executive order signed by President Donald Trump last year, which directed the Department of Labor to facilitate the inclusion of alternative assets in participant-directed defined contribution plans. The executive order also called on the Securities and Exchange Commission, the Treasury Secretary, and other federal agencies to explore ways to facilitate alternative investments, including digital assets, within retirement plans.

During the review, OIRA classified the rule as “having a significant economic impact,” triggering additional analysis under Executive Order 12866. This classification applies to regulations expected to impact the economy by $200 million or more annually or to have a substantial effect on the economy. According to OIRA documents, the proposed rule does not have a final statutory deadline.