In a move that signals a clear departure from previous federal policy, the U.S. Department of Labor has officially rolled back a 2022 guidance that had discouraged the inclusion of cryptocurrency in retirement plans like 401(k)s. The shift, announced on May 28, could reshape how digital assets are handled within employer-sponsored retirement portfolios.
The rescinded guidance—originally issued under the Biden administration—had advised fiduciaries to tread carefully when considering crypto exposure for retirement savers. At the time, the Department warned that cryptocurrencies were “speculative,” “highly volatile,” and fraught with valuation challenges, urging plan sponsors to approach them with “extreme caution.”
But now, the tide has turned.
Labor Secretary Lori Chavez-DeRemer, in her announcement, framed the policy reversal as a return to fiduciary independence. “We’re rolling back this overreach and making it clear that investment decisions should be made by fiduciaries, not D.C. bureaucrats,” she stated. According to her, the previous guidance undermined the traditional principle that retirement plan fiduciaries should have the autonomy to evaluate investment risks and returns without federal micromanagement.
Critics of the Biden-era directive—including the American Bankers Association (ABA)—had argued from the beginning that the guidance was overbearing and lacked due process. Notably, it was issued without a formal public comment period, which many viewed as a bypass of transparency and stakeholder input.
By rescinding the guidance, the Labor Department is now allowing fiduciaries greater flexibility to consider digital assets, including cryptocurrencies like Bitcoin and Ethereum, when constructing retirement investment options. While this doesn’t guarantee crypto will become commonplace in 401(k) plans overnight, it does remove a significant regulatory hurdle for asset managers looking to offer such products.
This policy shift aligns with a broader pro-crypto tone that’s been gaining traction under the Trump campaign’s 2024 platform. Donald Trump has openly declared his ambition to establish the United States as “the world capital of crypto.” This promise is reflected in a more lenient regulatory posture, with the Securities and Exchange Commission reportedly easing back on enforcement efforts targeting firms like Coinbase, Uniswap, and Kraken.
At the same time, the Trump camp has shown interest in facilitating conversations around tokenized real-world assets and clarifying the legal classification of various tokens—topics that remain critical to the evolution of digital finance in the U.S.
Still, not everyone is onboard with this looser approach. Some lawmakers and regulators have expressed concern over Trump’s crypto involvement, especially in light of questions surrounding certain business dealings and ventures linked to his inner circle. These developments suggest that while the federal climate is warming toward digital assets, the road ahead may still feature pockets of political friction.
For now, the Labor Department’s rollback is being hailed by crypto advocates as a win for innovation and investment freedom. It puts the power back in the hands of fiduciaries and retirement plan managers, offering them the discretion to evaluate emerging asset classes—including crypto—on their own merits.
As digital finance continues to grow and mature, this change could mark the beginning of a new era for how Americans prepare for retirement in a blockchain-enabled world.