The US Department of Labor has rescinded its 2022 guidance on cryptocurrency investments in 401(k) plans, marking a notable policy shift, announced on May 28, 2025.
This decision could reshape the retirement investment landscape, potentially increasing institutional adoption and opening new channels for cryptocurrency in retirement savings.
US Reverses 2022 Stance on Crypto in 401(k)s
The Department of Labor formally reversed its 2022 guidance, which had advised fiduciaries against adding cryptocurrency to retirement plans. This action reflects a return to a neutral stance on investment options, removing previous restrictions.
US Secretary of Labor Lori Chavez-DeRemer emphasized the rollback, stating that fiduciaries, not the government, should make investment decisions. The Employee Benefits Security Administration executed this policy change through Compliance Assistance Release No. 2025-01.
“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.” — Lori Chavez-DeRemer, U.S. Secretary of Labor Source
Potential Surge in Crypto Adoption for Retirement Funds
This reversal may lead to an increased institutional adoption of digital assets and provide more opportunities for individuals to incorporate cryptocurrency into their retirement savings. The decision removes previous regulatory barriers.
By reaffirming its neutral stance, the DOL allows greater freedom in retirement investment decisions. This could lead to broader retirement plan offerings, impacting financial markets and regulatory landscapes by enhancing digital asset inclusivity.
2022 Guidance Seen as Anomaly, Experts Say
Historically, the 2022 guidance was an anomaly, deviating from the DOL’s neutral approach under ERISA. The return to neutrality is consistent with earlier fiduciary investment standards and aligns with historical precedence.
Experts from the Wagner Law Group highlight the consistency with established fiduciary practices while allowing potential innovation. This shift is expected to encourage broader crypto adoption under a regulated fiduciary framework protecting plan participants.
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