In a move signaling a clear shift in federal policy toward cryptocurrency, the U.S. Department of Labor has officially rolled back guidance that once discouraged the inclusion of digital assets like Bitcoin in workplace 401(k) retirement plans. The reversal underscores former President Donald Trump’s growing embrace of crypto-friendly policies as he makes good on campaign promises to promote digital finance and scale back regulatory oversight.
This latest decision, announced Wednesday, directly targets the 2022 guidance issued during President Joe Biden’s tenure. That earlier guidance raised concerns about potential fraud, security vulnerabilities, and the volatile nature of crypto markets—effectively warning employers and fiduciaries to steer clear of offering crypto as an investment option in retirement accounts. At the time, the Labor Department’s message was unmistakable: cryptocurrency, with its inherent risks and lack of regulation, had no place in something as long-term and conservative as a 401(k).
But times—and administrations—have changed.
Now, under President Trump’s leadership, the Department of Labor is striking a very different tone. Rather than discouraging crypto, the agency is adopting what it calls a “neutral stance.” This means fiduciaries and retirement plan sponsors are no longer discouraged from considering digital assets; instead, they’re expected to exercise their own judgment based on what they believe is best for their clients.
In a formal statement, the department explained that it does “not seek to endorse or disapprove of fiduciaries who conclude that the inclusion of cryptocurrency in a plan’s investment menu is appropriate.” Essentially, the government is stepping back and allowing retirement planners more discretion—putting the responsibility back in the hands of financial professionals and plan participants.
This policy shift is more than just a bureaucratic update—it reflects a broader ideological pivot that’s been gaining momentum. Trump has increasingly positioned himself as a champion of blockchain innovation and financial decentralization, often painting the regulatory policies of the Biden era as overreach or bureaucratic meddling.
By rolling back the 2022 guidance, the administration is sending a clear message: it’s time for the U.S. to treat crypto as a legitimate component of modern financial strategy—even in something as traditionally cautious as retirement planning.
For the crypto industry, this development is likely to be celebrated. The inclusion of digital assets in mainstream investment vehicles like 401(k)s not only boosts credibility but also expands market access for millions of Americans who might otherwise never engage with cryptocurrencies. Institutional acceptance has long been a benchmark goal for crypto advocates, and opening retirement accounts to digital assets represents a significant step forward.
Still, the neutral stance doesn’t mean it’s a free-for-all. Fiduciaries are expected to conduct thorough due diligence and consider whether crypto investments align with the long-term interests of plan participants. That includes weighing the volatility and regulatory uncertainty that still surround the space.
Skeptics will no doubt question the wisdom of introducing highly volatile assets into retirement portfolios. But proponents argue that giving individuals more autonomy over their investment choices—and the ability to diversify into emerging asset classes—is a natural evolution of financial planning.
Whether this shift leads to a new wave of crypto adoption in retirement accounts remains to be seen. But one thing is certain: under President Trump’s leadership, the U.S. government is signaling a willingness to let crypto play a much bigger role in the financial future of everyday Americans.
