- The US Labor Department has rescinded its 2022 crypto guidance, allowing Bitcoin in 401(k) plans under ERISA rules.
- Secretary Lori Chavez-DeRemer stated the rollback restores fiduciary control over retirement investments.
- Several US states and federal agencies are shifting toward neutral or crypto-inclusive policies, including Texas and the SEC.
On May 28, 2025, the US Department of Labor rescinded its 2022 guidance that discouraged the inclusion of Bitcoin and other cryptocurrencies in 401(k) retirement plans. The department now takes a neutral stance, allowing fiduciaries to decide whether to include digital assets.
The earlier guidance, issued during a period of regulatory caution, had warned plan fiduciaries to exercise “extreme care” when offering crypto investments. Though it didn’t ban crypto outright, it significantly deterred adoption. That guidance has now been withdrawn.
In a press release, US 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 DC bureaucrats.”
She noted that the 2022 policy conflicted with the department’s obligation to remain neutral regarding investment types.
Bitcoin’s Status in Retirement Plans Could Shift
The Labor Department’s updated position affects 401(k) plan sponsors and asset managers who had previously held back from offering Bitcoin. With the removal of restrictive language, crypto options may now return to investment menus.
The 2022 policy had cited the volatility and lack of regulatory clarity around crypto markets as key concerns. Many providers interpreted the language as a warning against offering Bitcoin in retirement portfolios. Now, with the shift, fiduciaries can reassess those offerings under existing Employee Retirement Income Security Act (ERISA) rules without additional federal discouragement.
Several pension funds continued their exposure to crypto during the ban period. State funds in Wisconsin and Michigan disclosed positions in spot Bitcoin ETFs after the January 2024 approvals. These funds used ETFs to gain price exposure without directly holding Bitcoin, citing regulatory comfort with SEC-approved vehicles.
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Government Agencies Adjust Crypto Policy Under New Leadership
This reversal by the Labor Department comes amid broader changes in federal crypto policy. Since early 2024, several agencies have scaled back restrictions and reopened discussions on how to integrate digital assets.
The Office of the Comptroller of the Currency (OCC) had earlier reinstated its 2020 guidance, allowing federally chartered banks to engage in cryptocurrency transactions. In parallel, the Securities and Exchange Commission (SEC) has dropped high-profile lawsuits against leading crypto companies.
SEC officials are now engaging with industry stakeholders through formal roundtables. These sessions aim to gather feedback on regulatory frameworks. Although enforcement actions continue, the dialogue signals an effort to create long-term clarity.
At the state level, Texas and New Hampshire have both passed Strategic Bitcoin Reserve bills. These measures enable public pension funds to allocate part of their assets to Bitcoin under defined frameworks. The Texas legislation allows treasury allocations into BTC-backed ETFs.
Chavez-DeRemer Links 2022 Policy to Legal Conflict
Secretary Chavez-DeRemer also noted that the 2022 guidance may have violated ERISA’s provisions by implying policy preferences. ERISA requires fiduciaries to act solely in the interest of plan participants without bias toward specific assets.
“This wasn’t about risk management. It was about federal interference,”
said Chavez-DeRemer, highlighting the need to restore fiduciary discretion. The department now stresses that its role is not to pre-approve or block specific investments.
With this rollback, fiduciaries remain responsible for evaluating the suitability of any crypto-related option. The decision shifts the burden back to plan managers to assess risk, liquidity, and compliance under existing law.
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