US Labor Department Reverts to Neutral Stance on Crypto in Retirement Plans

The US Department of Labor has withdrawn its 2022 compliance release that discouraged fiduciaries from including cryptocurrency options in 401(k) retirement plans. The move marks a return to a neutral stance, aligning with the statutory language of the Employee Retirement Income Security Act (ERISA).

Previously, the Department’s guidance urged "extreme care" when considering digital assets for retirement portfolios. The Employee Benefits Security Administration now acknowledges that this directive lacked statutory basis and deviated from principles-based oversight.

Labor Secretary Lori Chavez-DeRemer emphasized that while the Department neither endorses nor disapproves of crypto in retirement plans, investment discretion remains with fiduciaries under ERISA. The statement maintains that fiduciaries must still act in participants’ best interests, but without asset-specific warnings.

This policy shift removes what many in the crypto industry viewed as regulatory overreach. The original 2022 notice had created significant headwinds for institutional crypto adoption in retirement products.