Article Originally Published: Investopedia
The Department of Labor threw Biden-era crypto caution to the wind Wednesday, rescinding guidance that had called for employers to use “extreme caution” when including cryptocurrency-based options in retirement plans.
The department said Wednesday it was withdrawing the guidance established in 2022 discouraging fiduciaries from including crypto options for 401(k) retirement plans.1
“The Biden administration’s Department of Labor made a choice to put their thumb on the scale,” Secretary of Labor Lori Chavez-DeRemer said in a press release. “We’re rolling back this overreach and making it clear that investment decisions should be made by fiduciaries, not D.C. bureaucrats.”
The old guidance had highlighted the many risks of buying and holding cryptocurrencies, including extremely volatile valuations, exposure to fraud, and difficulties with record keeping, advising fiduciaries to think twice before including any crypto options in retirement plans offered to employees.2
Department of Labor. “Compliance Assistance Release No. 2022-01.” Fiduciaries are required by law to act in the best interests of their clients.
