PANews reported on June 3 that, according to The Block, U.S. Senators Bernie Sanders and Elizabeth Warren, along with Representative Robert Scott, sent a letter to the Department of Labor requesting the withdrawal of a proposed rule that would allow 401(k) retirement plans to include alternative assets such as cryptocurrencies. The lawmakers stated in the letter that the proposed rule would create a so-called safe harbor for trustees offering alternative investments, which would strip retirement savers of long-standing investor protections and encourage the use of riskier, more complex, and expensive investments.

The Labor Department released the proposed rule in March, providing guidance for 401(k) plan managers on how to include alternative assets, including private equity, real estate, and digital assets, in their portfolios. Lawmakers expressed concerns about the volatility of digital assets, citing an FBI report indicating that crypto-related fraud losses could reach a record $11 billion by 2025. They also pointed to a conflict of interest involving the Trump family in the crypto space, arguing that the Labor Department's proposed rule could advance the president's interests at the expense of ordinary workers and retirees.