Trump Revises Crypto Investment Rules for Pensions

Trump's Labor Department Restores Crypto Investing Rules for Pensions

29 May 2025 at 09: 06

Reading time: 2 minutes

The U.S. Department of Labor on Wednesday repealed a 2022 directive that discouraged investing in digital assets in 401(k) retirement plans, marking one of the latest crypto-friendly moves by the Trump administration.

The organization clarified that the withdrawal of the guidance reflected their “neutral stance,” emphasizing that they do not pass judgment on fiduciaries’ decisions to include cryptocurrency in the investment offerings of their plans, if they deem it appropriate.

In 2022, under former President Joe Biden, the Department of Labor issued guidance advising against including crypto in 401(k) plans, citing concerns about fraud, theft, and the lack of regulation within the asset class. However, the current administration appears to be following through on campaign promises to embrace the digital asset sector and loosen regulations.

US Secretary of Labor Lori Chavez-DeRemer said: “The Biden administration has chosen to throw its weight around. We are rolling back this overreach and making it clear that investment decisions should be made by fiduciaries, not bureaucrats in Washington.”

Regulators, led by Trump, have filed multiple lawsuits against crypto-focused companies, including exchanges like Coinbase and Kraken, repealed. The Securities and Exchange Commission (SEC) also launched a crypto task force shortly after Trump took office. SEC Commissioner Hester Peirce, a well-known crypto advocate affectionately dubbed “Crypto Mom,” is leading the task force, which is focused on a more collaborative approach with crypto companies.

The Department of Labor’s 2022 guidance threatened investigations into companies offering crypto in retirement accounts. Including crypto in retirement plans is not common, but leading asset manager Fidelity launched a new product in 2022, giving companies and their employees access to Bitcoin.

Under the Biden administration, regulators and lawmakers have taken an increased focus on the sector, especially following the demise of crypto exchange FTX and its subsidiaries — one of the largest bankruptcies in history.

Frequently Asked Questions

What is the recent change in Department of Labor guidelines regarding 401(k) and digital assets?
The Department of Labor has withdrawn its previously issued guidance discouraging investing in digital assets within 401(k) plans and has adopted a position of neutrality.

Why was the earlier guidance issued under the Biden administration?
The directive was issued amid concerns about potential fraud, theft and lack of regulation within the cryptocurrency market, particularly following incidents in the sector.

What are the implications of this change for investors and companies?
The repeal of the directive opens the door for fiduciaries to include cryptocurrency in 401(k) plan investment offerings, giving investors more options and allowing companies to develop new products for their retirement accounts.

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