The Department of Labor has formally withdrawn its defense of the prior administration’s Retirement Security Rule—commonly referred to as the fiduciary rule—ending a prolonged legal battle over whether rollover and retirement investment advice should fall under ERISA’s fiduciary standard. 

After requesting three separate delays earlier this year, the DOL’s Employee Benefits Security Administration submitted an unopposed motion to dismiss its appeal in the U.S. Court of Appeals for the Fifth Circuit. The withdrawal pertains specifically to the DOL’s appeal of nationwide stays issued by the U.S. District Courts for the Northern and Eastern Districts of Texas, both of which halted enforcement of the rule shortly before its planned implementation. 

The move effectively concludes litigation surrounding the 2024 fiduciary rule, which was designed under former President Joe Biden to broaden the definition of a fiduciary, including for advice related to IRA rollovers and guidance to small employer plans. Although slated to take effect in September 2024, the rule faced immediate pushback from industry groups and financial firms, which argued that the regulation exceeded the DOL’s statutory authority and ran afoul of the Administrative Procedure Act. 

In July 2024, federal courts in Texas issued sweeping stays blocking the rule. Opponents—including groups such as the American Council of Life Insurers, the National Association of Insurance and Financial Advisors, and the Insured Retirement Institute—welcomed the withdrawal, stating that the rule “resurrects a failed 2016 approach” and would have restricted consumer access to retirement guidance. The challengers argued that the DOL had not meaningfully distinguished the updated rule from the Obama-era version, which the Fifth Circuit struck down in 2018. 

The withdrawal suggests a broader regulatory reset. The DOL has already indicated plans to repeal and rewrite other Biden-era rules, including those governing ESG considerations in retirement plans. It is also preparing guidance aimed at expanding access to alternative asset classes—such as private equity and cryptocurrencies—within retirement accounts. While the Biden administration did not ban crypto in 401(k)s, earlier DOL guidance had warned fiduciaries to exercise “extreme care” before adding such options.