U.S. Department of Labor Rescinds 2022 Crypto Warning for 401(k) Plans

The initial 2022 memo, issued by the DOL’s Employee Benefits Security Administration, urged fiduciaries to exercise “extreme care” before including crypto assets in retirement plans. Critics argued that the language deviated from the Employee Retirement Income Security Act (ERISA) by signaling a biased stance, departing from the department’s traditional neutral, principles-based investment approach.

On May 28, the DOL reversed course.

“The Biden administration’s Department of Labor made a choice to put their thumb on the scale,” said U.S. Secretary of Labor Lori Chavez-DeRemer. “We’re rolling back this overreach and making it clear that investment decisions should be made by fiduciaries, not DC bureaucrats.”

A Return to Fiduciary Freedom

The rollback reestablishes the DOL’s neutral stance, clarifying that it neither endorses nor rejects the inclusion of cryptocurrency in retirement plan menus. Instead, it empowers fiduciaries to make decisions based on what they deem best for plan participants—without undue federal influence.

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This move is being welcomed by both crypto advocates and supporters of decentralized finance (DeFi), who see it as a step toward financial inclusion and innovation within the retirement space. It also opens the door for employers and retirement providers to reintroduce Bitcoin, Ethereum, and other digital assets into retirement portfolios, pending fiduciary approval.

Why It Matters

With digital assets becoming increasingly mainstream, today’s decision could significantly impact how Americans diversify their retirement savings. It also signals a potential shift in how regulators treat crypto-related financial products.

As the debate continues over how crypto fits into long-term investing, the DOL’s reversal suggests one thing: fiduciaries—not the federal government—should decide what belongs in a 401(k).

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