Crypto in 401(k)s: Labor Dept Rescinds Biden-Era Guidance
The US Labor Department has rescinded guidance from the Biden administration that restricted cryptocurrency inclusion in 401(k) retirement plans. The revocation of the 2022 guidance allows asset managers more flexibility to include digital assets in retirement options. The department stated the previous guidance deviated from its historically neutral approach to fiduciary investment decisions. US Secretary of Labor Lori Chavez-DeRemer emphasized that investment decisions should be made by fiduciaries rather than government officials. The Biden administration had warned that cryptocurrencies posed significant risks to retirement accounts due to their volatility. The American Banking Association criticized the 2022 guidance for lacking public comment opportunities. In related developments, President Trump aims to position the US as the "world capital of crypto" during his 2024 campaign, with his administration having previously reduced enforcement actions against Web3 companies and engaging in policy discussions on crypto regulation. Concerns have been raised regarding potential conflicts of interest related to Trump's crypto ventures.
