**๐บ๐ธ U.S. Labor Department Rescinds Crypto Guidance for 401(k) Plans **
In a landmark move, the U.S. Department of Labor (DOL) has officially rescinded its 2022 guidance that discouraged fiduciaries from including cryptocurrencies like Bitcoin in 401(k) retirement plans . This policy shift marks a significant change in the federal approach to digital assets in retirement savings.
๐ Background
The previous guidance, issued in March 2022, advised plan fiduciaries to exercise "extreme care" when considering the addition of cryptocurrency options to 401(k) investment menus . This stance was seen as a departure from the DOL's historically neutral position on investment types under the Employee Retirement Income Security Act (ERISA).
๐ What's Changed?
As of May 28, 2025, the DOL has withdrawn this guidance, returning to a neutral stance that neither endorses nor disapproves of including cryptocurrencies in retirement plans . Labor Secretary Lori Chavez-DeRemer stated that the previous administration's policy was an overreach, emphasizing that investment decisions should be made by fiduciaries, not government bureaucrats .
๐ Implications
This reversal opens the door for plan fiduciaries to consider cryptocurrency options in 401(k) plans, provided they adhere to ERISA's fiduciary standards . It reflects a broader shift towards embracing digital assets within the U.S. financial system.
Notably, this policy change aligns with the current administration's pro-crypto stance, as evidenced by recent initiatives such as the Trump-affiliated Truth Social's parent company announcing plans for a $2.5 billion "bitcoin Treasury" .
๐ Market Reaction
Following the announcement, Bitcoin's price experienced a surge, reaching an all-time high of over $110,000 . This uptick reflects growing investor confidence in the integration of cryptocurrencies into mainstream financial products.
*Disclaimer: This post is for informational purposes only and does not constitute financial advice.*