Trump's Labor Department Retracts Biden-Era Guidance Against Crypto in Retirement Plans
The U.S. Department of Labor rescinded 2022 guidance that discouraged 401(k) digital asset investing, reaffirming a neutral stance on cryptocurrency inclusion in retirement plans. The previous guidance, issued under the Biden administration, cited concerns over fraud and regulation. The current administration aims to reduce regulatory barriers for the digital asset industry. U.S. Secretary of Labor Lori Chavez-DeRemer criticized the prior guidance as overreach, emphasizing that investment decisions should be made by fiduciaries. Trump-appointed regulators have dismissed lawsuits against crypto companies and initiated a crypto task force led by SEC Commissioner Hester Peirce. While offering crypto in retirement plans is rare, Fidelity introduced a Bitcoin product in 2022. The Biden administration has faced scrutiny of the crypto industry, particularly after the FTX collapse.
