In a decisive policy shift, the U.S. Labor Department has rescinded guidance from the Biden era that had urged caution regarding the inclusion of cryptocurrencies in 401(k) retirement plans. Announced on May 28, the retraction of the 2022 directive marks a significant departure from previous stances, allowing asset managers greater leeway to incorporate digital assets into retirement portfolios.
A Return to Neutrality?
The Labor Department’s move back to a “historically neutral, principled-based approach” signals a shift in the regulatory landscape. Secretary of Labor Lori Chavez-DeRemer emphasized the importance of entrusting fiduciaries with investment decisions, rather than leaving these choices to Washington bureaucrats. This rollback is seen as a boon for asset managers eager to diversify retirement offerings with the burgeoning digital asset class.
The original guidance, criticized for its lack of public consultation, had painted cryptocurrencies as risky and speculative. The American Banking Association was among the voices disapproving of the 2022 directive, arguing that it bypassed essential public discourse. Now, with the guidance lifted, the door opens wider for cryptocurrencies to establish a foothold in traditional retirement savings structures. For a deeper dive into the regulatory implications, see our coverage of the SEC’s latest guidance.
Market Reactions and Implications
Industry insiders have greeted the change with optimism. “This is a positive step for innovation in the retirement space,” remarked Julia Thompson, a financial analyst at Crypto Insights LLC. “It acknowledges the growing interest and legitimacy of digital assets as a component of diversified investment strategies.”
The move could catalyze a shift in retirement planning, attracting both seasoned investors and the crypto-curious to explore options that include Bitcoin and Ethereum, among others. Yet, the volatility inherent to these assets remains a point of contention. Critics argue that without stringent checks, the potential for market instability could jeopardize retirement savings. This sentiment echoes recent concerns from Arizona’s governor, who called crypto an ‘untested investment’ in our report on the vetoed Bitcoin Reserve Bill.
The timing of this policy shift is intriguing. With President Trump aiming to position the U.S. as a crypto hub, regulatory attitudes appear to be warming—a stark contrast to previous administrations. The SEC has noticeably relaxed its stance on several Web3 companies, suggesting a broader governmental pivot towards embracing crypto’s potential.
Unresolved Questions
As the landscape evolves, questions linger regarding the sustainability of this trend. Will the newfound flexibility in 401(k) offerings translate into tangible benefits for everyday investors? And what safeguards will be enacted to protect retirees from potential market turbulence?
There’s also the matter of balancing innovation with regulation. As digital assets gain traction in traditional markets, the necessity for clear, comprehensive regulatory frameworks becomes ever more pressing. This balance will be crucial in ensuring that the expansion of crypto into retirement plans is both safe and beneficial.
In June 2025, the industry will be watching closely to see how asset managers respond to this newfound liberty and whether the promised benefits materialize for investors. As always in crypto, the only certainty is change—and perhaps, opportunity.
Source
This article is based on: Labor Department rescinds Biden-era guidance for crypto in 401(k) plans
Further Reading
Deepen your understanding with these related articles:
- UK’s FCA Seeks Public and Industry Views on Crypto Regulation
- U.S. Congress Braces for Intense Debate Over Crypto Legislation This Summer (openai)
- US crypto groups urge SEC for clarity on staking
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
