The proposed rule change seeks to enable Americans to invest in products like crypto that better reflect the current investment landscape, Labor Secretary Lori Chavez-DeRemer said.

The US Department of Labor has proposed a rule change seeking to expand investment options in 401(k) retirement plans, including crypto, moving the country one step closer to implementing US President Donald Trump’s executive order in August.

A notice for the Labor Department’s proposal, titled “Fiduciary Duties In Selecting Designated Investment Alternatives,” appeared on the Federal Register on Monday, with a pre-publish version of the document detailing the factors that retirement managers should consider when incorporating crypto and other alternative investments into client portfolios.

The draft defined digital assets as “a new form of investing that includes a wide variety of assets that can be stored and transmitted digitally, including cryptocurrencies such as bitcoin and other tokens.”

Related: Bitcoin 401(k)s thrill crypto investors but carry serious risks

SEC Chair Paul Atkins added on Monday that broadening American investors’ access to well-diversified, long-term investments that harness innovation and economic growth is a “critical priority for effective retirement planning.”

Wall Street firms suggest 1-4% crypto allocations

Morgan Stanley, an investment bank that has made an aggressive push into crypto this year, told its 16,000 financial advisers — who collectively manage $6.2 trillion in client assets — in October that they can recommend crypto investments to their clients.

In the same month, Morgan Stanley recommended a 2% to 4% allocation to crypto portfolios for investors.

BlackRock, the largest asset manager, recommends a more modest crypto allocation of 1% to 2% for more diversified portfolios.

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