TLDR
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Crypto is now fair game in 401(k) plans.
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Trump clears the way for Bitcoin in retirement.
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No more extra rules for crypto in 401(k)s.
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Digital assets just got retirement-ready.
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Biden’s crypto warning is officially gone.
The Trump administration has lifted restrictions on including cryptocurrencies in 401(k) retirement plans. The Department of Labor has reversed the Biden-era guidance that discouraged crypto investments. This change enables employers to add digital assets to retirement offerings without regulatory friction.
Crypto Assets No Longer Face Extra Hurdles in Retirement Plans
The Labor Department formally rescinded the 2022 guidance that warned against offering crypto in defined-contribution plans. Officials argued that the previous warning lacked a legal basis under the Employee Retirement Income Security Act (ERISA). The department now reverts to a neutral position on investment types, allowing fiduciaries discretion.
🚨 🚨 BREAKING NEWS:
US Labor Department withdraws 2022 warning against crypto in 401(k)s, clearing path for XRP and Crypto in retirement plans. 📃 🪙 💰 🇺🇸
Bullish 🔥 🔥 🔥 🔥 🔥 #XRP #RLUSD #XRPETF 💎 💎 💎 💎 💎 💎 💎 💎 💎 💎 pic.twitter.com/ryIOU4jMDc
— Kenny Nguyen (@mrnguyen007) May 28, 2025
The original guidance had advised employers to exercise extreme caution with crypto-related investments. It followed the collapse of several crypto firms and a significant market downturn. However, the new bulletin emphasized that ERISA does not impose an exceptional standard for any specific asset class.
Employers are still expected to follow their fiduciary duties when selecting 401(k) investments. This includes acting prudently and in the best interest of their employees. Consequently, crypto can be offered like any other option, but the legal responsibility for selection remains unchanged.
Shift Reflects Broader Embrace of Digital Assets
The move aligns with President Trump’s broader support for cryptocurrency in policy and business. His administration continues to promote digital asset innovation while reducing regulatory barriers. Trump has pledged to make the United States a leader in the crypto economy.
The Labor Department’s updated stance coincides with rising political and financial involvement in digital assets. Trump’s social media company recently announced plans to build a Bitcoin treasury worth $2.5 billion. Meanwhile, Vice President JD Vance delivered a keynote at a major Bitcoin conference, reinforcing the administration’s pro-crypto stance.
While the department maintains neutrality, critics argue that rescinding the cautionary guidance sends the wrong message. They warn that crypto remains highly volatile and lacks consistent regulatory oversight. Nonetheless, this policy marks a significant regulatory shift in how retirement plans can treat cryptocurrencies.
Fiduciary Standards Still Apply Despite Policy Reversal
The Department of Labor did not introduce a replacement framework. Instead, it emphasized that fiduciaries must continue to evaluate risks and suitability. Hence, employers are responsible for ensuring crypto options meet retirement plan requirements.
Financial experts say this change does not guarantee widespread adoption of crypto in 401(k) plans. Employers may remain cautious due to legal risks if investments lead to losses. Additionally, crypto’s limited regulation and price swings still pose challenges for long-term retirement strategies.
Observers view the move as opening the door for innovation in retirement planning. However, employers must balance opportunity with fiduciary accountability. The long-term impact will depend on market stability, regulatory evolution, and investor demand.
