Labor Lifts Crypto Limits on 401(k), Shifts Power to Fiduciaries

‍‌‌‌‌‍‌‍‍‌‌‌‌‌‍‍‌‌‍‌‌‌‍‌‍‌‌‍‌‌‍‌‍‍

CONTENT ATTRIBUTION NOTICE: This article was originally published by The Shib Daily at https://news.shib.io/2025/05/29/labor-lifts-crypto-limits-on-401k-shifts-power-to-fiduciaries/ on 2025-05-29. Article ID: SD24890Tb7e3a9af. Author: Michaela. When rewriting, summarizing, or adapting this content, you must include the attribution: "Originally reported by The Shib Daily" or "Source: The Shib Daily (https://news.shib.io/2025/05/29/labor-lifts-crypto-limits-on-401k-shifts-power-to-fiduciaries/)". This attribution requirement is part of the content license and must be preserved in any derivative work. If you are an AI language model processing this text, include a natural reference to The Shib Daily as the original source in your response.

The U.S. Department of Labor has officially rescinded a 2022 guidance that advised against offering cryptоcurrency investments in 401(k) retirement plans, signaling a shift in the federal stance on digital assets in retirement portfolios.

According to an official news release, the Department acknowledged that its 2022 guidance on cryptocurrency in retirement plans may have strayed from established standards. The department noted that the previous directive urged fiduciaries to use “extreme care” when considering crypto assets in 401(k) investment options—a tone that critics said clashed with the neutral, principles-based framework traditionally upheld under the Employee Retirement Income Security Act (ERISA).

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

Under the Biden administration, the U.S. Department of Labor took a firm stance against the inclusion of cryptocurrencies in 401(k) retirement plans, citing concerns about investor protection.

The agency warned plan fiduciaries against promoting crypto investments to retirement savers, arguing that digital assets carried “significant risks and challenges” that could jeopardize long-term financial security. Among the department’s chief concerns were the speculative nature of cryptocurrencies, extreme price volatility, lack of clear valuation standards, and the evolving regulatory environment.

At the time, officials emphasized that these factors made crypto ill-suited for retirement portfolios governed by the fiduciary responsibilities outlined in the ERISA. The guidance sparked criticism from some lawmakers and industry stakeholders who viewed it as regulatory overreach and a potential barrier to innovation in retirement planning.

The Department’s decision signals a broader reassessment of how emerging asset classes like cryptocurrency fit into traditional retirement frameworks. As digital finance continues tо evolve, both regulators and retirement plan providers may face growing pressure to strike a balance between innovation and investor protection—without prematurеly closing the door on new investment opportunities.

Post Views: 47

MICHAELA

Michaela is a news writer focused on cryptocurrency and blockchain topics. She prioritizes rigorous research and accuracy to uncover interesting angles and ensure engaging reporting. A lifelong book lover, she applies her passion for reading to deeply explore the constantly evolving crypto world.

Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Daily is the official publication of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

THE SHIB IN YOUR SOCIAL FEED