U.S. DOL Rescinds 2022 Crypto Guidance, Adopts Neutral Stance on 401(k) Plans
The U.S. Department of Labor (DOL) has officially rescinded its 2022 compliance guidance that advised 401(k) plan fiduciaries to exercise “extreme care” before including cryptocurrency options in retirement plans. The rescission, announced via Compliance Assistance Release No. 2025-01, reaffirms the DOL’s neutral stance, neither endorsing nor disapproving of fiduciaries who deem cryptocurrencies appropriate for 401(k) plans.
U.S. Secretary of Labor Lori Chavez-DeRemer stated, “The Biden administration’s Department of Labor made a choice to put their thumb on the scale. We’re rolling back this overreach and making it clear that investment decisions should be made by fiduciaries, not D.C. bureaucrats.”
This policy change aligns with the current administration’s broader pro-cryptocurrency stance, including recent initiatives and public endorsements of digital assets. The decision opens the door for fiduciaries to consider including digital assets like Bitcoin and Ethereum in 401(k) portfolios, provided they adhere to ERISA’s stringent prudence and loyalty standards.
Despite the regulatory shift, many financial advisors continue to recommend caution, suggesting cryptocurrency exposure in retirement portfolios be limited to a small percentage due to the asset class’s inherent volatility and speculative nature.
