U.S. Labor Department Reverses Stance on Crypto in 401(k) Plans

The U.S. Department of Labor has rescinded its 2022 guidance that discouraged retirement plan fiduciaries from including cryptocurrency as an investment option in 401(k) plans. The department now calls the earlier directive a departure from established legal standards under the Employee Retirement Income Security Act (ERISA).

Secretary of Labor Lori Chavez-DeRemer criticized the previous administration for overreach, stating that investment decisions should remain with fiduciaries rather than federal regulators. The move signals a return to the department’s historically neutral stance on investment types, removing language that urged "extreme care" when considering crypto offerings.

This reversal comes as the cryptocurrency market continues to mature, with institutional adoption gaining momentum despite ongoing volatility concerns. The Labor Department’s shift may pave the way for greater crypto integration in retirement portfolios.