U.S. Department of Labor Rescinds 2022 Crypto Warning for 401(k) Plans
In a major policy reversal, the U.S. Department of Labor (DOL) has officially rescinded its 2022 guidance that discouraged retirement plan fiduciaries from offering cryptocurrency options in 401(k) investment menus.
The initial 2022 memo, issued by the DOL’s Employee Benefits Security Administration, urged fiduciaries to exercise “extreme care” before including crypto assets in retirement plans. Critics argued that the language deviated from the Employee Retirement Income Security Act (ERISA) by signaling a biased stance, departing from the department’s traditional neutral, principles-based investment approach.
On May 28, the DOL reversed course.
“The Biden administration’s Department of Labor made a choice to put their thumb on the scale,” said U.S. Secretary of Labor Lori Chavez-DeRemer. “We’re rolling back this overreach and making it clear that investment decisions should be made by fiduciaries, not DC bureaucrats.”
A Return to Fiduciary Freedom
The rollback reestablishes the DOL’s neutral stance, clarifying that it neither endorses nor rejects the inclusion of cryptocurrency in retirement plan menus. Instead, it empowers fiduciaries to make decisions based on what they deem best for plan participants—without undue federal influence.
This move is being welcomed by both crypto advocates and supporters of decentralized finance (DeFi), who see it as a step toward financial inclusion and innovation within the retirement space. It also opens the door for employers and retirement providers to reintroduce Bitcoin, Ethereum, and other digital assets into retirement portfolios, pending fiduciary approval.
Why It Matters
With digital assets becoming increasingly mainstream, today’s decision could significantly impact how Americans diversify their retirement savings. It also signals a potential shift in how regulators treat crypto-related financial products.
As the debate continues over how crypto fits into long-term investing, the DOL’s reversal suggests one thing: fiduciaries—not the federal government—should decide what belongs in a 401(k).
Kosta has reported on cryptocurrency markets and blockchain infrastructure since 2020, bringing over six years of hands-on experience in the crypto industry built through daily tracking of markets, trends, and emerging blockchain developments. Specializing in Bitcoin on-chain analysis, institutional ETF flows, and digital asset price action, his work at Coindoo has been cited by other news agencies and consistently covers market developments with a focus on data-driven reporting across Bitcoin, Ethereum, Solana, and XRP. Over the years, Kosta has contributed to multiple crypto media outlets in different regions, authoring over 6,000 articles across the sector. His reporting spans cryptocurrency markets and the broader fintech industry, tracking not only price action but also the technological and regulatory forces shaping the ecosystem. To support his analysis, Kosta actively leverages on-chain data and metrics from leading platforms such as Santiment, Glassnode, and CryptoQuant, enabling deeper, evidence-based market insights. He believes in the power of transparency and the data that underpins the blockchain ecosystem. His academic background in Marketing Management from Denmark further complements his analytical approach, adding a strong understanding of communication strategy and content positioning to his work.
