Crypto in retirement plans is making a notable comeback following a significant policy reversal by the U.S. Labor Department. On May 28, the department announced it had officially rescinded its 2022 compliance guidance, which had strongly warned fiduciaries against including cryptocurrency options in 401(k) investment menus.
The department’s Employee Benefits Security Administration stated the old directive conflicted with ERISA’s neutral investment standards. By reversing the rule, officials now allow fiduciaries to evaluate crypto without government interference.
Labor Secretary Lori Chavez-DeRemer emphasized that investment decisions should rest with fiduciaries, not be dictated by government officials in Washington. She argued that the 2022 guidance represented unnecessary regulatory overreach that restricted financial professionals from making sound, personalized decisions for retirement savers.
In 2022, the department had expressed concern about the risks of crypto investments. Officials urged extreme caution at the time. However, growing public interest in digital assets has pushed the conversation forward.
Other federal agencies have also adjusted their positions on digital assets, signaling a broader regulatory shift. The Federal Deposit Insurance Corporation (FDIC) recently announced that banks under its supervision can participate in crypto-related activities without first seeking special approval. However, these institutions must still implement strong risk management practices. This guidance marks a major change from earlier cautionary policies.
This broader change in tone may significantly expand access to crypto in retirement plans across the country. With the Labor Department stepping back from strict oversight, fiduciaries now have more flexibility to consider digital assets as part of diversified retirement portfolios.
Trump’s support for Bitcoin and rising industry backing also fuel this shift toward broader acceptance. As more political figures and financial leaders embrace digital assets, public confidence continues to grow. Trump’s vocal endorsement signals that crypto may become part of future financial strategies, especially in areas like retirement planning.
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