Senators Bernie Sanders (D-VT) and Elizabeth Warren (D-Mass.) have sent a letter to the Department of Labor urging the rejection of a proposed rule that would permit cryptocurrencies and other alternative assets in 401(k) retirement plans. This rule, stemming from a Trump administration executive order, aims to create a safe harbor for 401(k) managers to include these assets. However, Sanders and Warren argue that this would strip essential investor protections that have been in place for decades, potentially leading to riskier and more expensive investment options for retirement savers. They referenced the volatility of cryptocurrencies, using the example of a meme coin that peaked at over $73 but has since plummeted to around $2. Additionally, they pointed to an FBI report highlighting that crypto-related fraud losses reached a staggering $11 billion in 2025, with seniors being disproportionately affected. The lawmakers also raised concerns about conflicts of interest, noting that the Trump family reportedly gained approximately $5 billion from crypto investments, questioning the integrity of regulations proposed by an administration that could benefit financially from them. This proposed rule could represent a significant influx of capital into the crypto market, as 401(k) plans hold over $7 trillion in assets, but the Democratic opposition may complicate its passage.