KuCoin says DOL 401(k) crypto rule may favor BTC, ETH over altcoins

A U.S. Department of Labor rule proposal that would allow alternative assets including cryptocurrencies in 401(k) retirement plans is likely to make it difficult for altcoins other than Bitcoin and Ethereum to qualify, according to a KuCoin analysis. KuCoin said a draft released in March did not limit the types of cryptocurrencies that could be included or set a minimum market capitalization threshold, but would require plan managers to evaluate six factors: performance and fees, liquidity, valuation, benchmarks, and complexity. While the proposal sets no separate restrictions, KuCoin said smaller-cap altcoins may struggle to meet the requirements.