U.S. Labor Department Removes Restrictions on Cryptocurrency in Retirement Plans

The U.S. Department of Labor has ended its previous guidance restricting cryptocurrency investments in 401(k) plans. This change marks a reversal from the department’s 2022 warning against including cryptocurrencies, which advised trustees to exercise extreme caution. The earlier stance contradicted the department’s typically neutral approach under the Employee Retirement Income Security Act (ERISA). Labor Secretary Lori Chavez-DeRemer challenged the previous guidance as an instance of government overreach and emphasized that investment decisions should remain within the purview of plan trustees rather than bureaucratic directives.