Catenaa, Thursday, May 29, 2025-The US Department of Labor has reversed its 2022 stance discouraging the inclusion of cryptocurrency in 401(k) retirement plans, accusing the previous administration of regulatory overreach.
In a statement issued Wednesday, US Secretary of Labor Lori Chavez-DeRemer said investment choices should rest with fiduciaries rather than federal officials.
The reversal marks another move by federal agencies under President Donald Trump to ease prior constraints on digital asset activity.
Since taking office in January, the Trump administration has signaled a friendlier posture toward crypto by appointing pro-crypto officials to lead financial and regulatory agencies.
The Labor Department’s 2022 guidance urged extreme caution when considering crypto as a retirement investment, citing high volatility, risk of misjudgment, and the potential to attract inexperienced investors.
Wednesday’s announcement nullifies that guidance, potentially paving the way for broader adoption of digital assets in retirement portfolios.
This latest policy shift follows similar actions by other federal bodies. In March, the Federal Deposit Insurance Corporation rescinded rules requiring banks to notify the agency before entering crypto activities.
Shortly afterward, the Federal Reserve withdrew guidance discouraging financial institutions from participating in digital asset markets.
The Labor Department’s move is expected to reignite debate over the role of crypto in mainstream financial planning.
