In a landmark policy shift, the U.S. Department of Labor has rolled back a 2022 directive that discouraged retirement plan sponsors from offering cryptocurrency investment options in 401(k) menus. The move reflects the Trump administration’s broader push to normalize digital assets within traditional finance.
Labor Secretary Lori Chavez-DeRemer framed the decision as a rebalancing of authority—placing power back in the hands of fiduciaries managing retirement plans rather than federal regulators.
“The Biden administration’s Department of Labor made a choice to put their thumb on the scale,” Chavez-DeRemer said during the announcement.
“We’re rolling back this overreach and making it clear that investment decisions should be made by fiduciaries, not D.C. bureaucrats.”
The now-rescinded guidance, issued under the Biden administration, had strongly cautioned plan sponsors against crypto exposure due to concerns over volatility, fraud, and inadequate investor protections. That stance has been abandoned in favor of what the department now calls a “neutral position” on digital asset inclusion.
While the update does not explicitly endorse cryptocurrencies in retirement portfolios, it opens the door for fiduciaries to evaluate offerings such as Bitcoin, Ethereum, or other digital assets—so long as they comply with fiduciary standards under the Employee Retirement Income Security Act (ERISA).
The reversal marks a pivotal moment in President Trump’s increasingly pro-crypto platform. With election season heating up, the administration has leaned heavily into digital asset advocacy—positioning crypto as both a strategic financial innovation and a cultural symbol of economic independence.
Trump’s Crypto Pivot Gains Momentum as SEC Reforms Begin
The Labor Department’s new stance is just one piece of a larger, fast-moving shift in federal crypto policy. Under Trump’s renewed administration, top regulators have begun dismantling several high-profile legal actions brought against major digital asset firms—signaling a broader effort to reset the regulatory climate.
Most notably, lawsuits previously filed against major exchanges like Coinbase and Kraken are being quietly withdrawn, a striking reversal from the enforcement-heavy approach of the prior administration. This change is part of a larger mandate driven by SEC Commissioner Hester Peirce—long known in crypto circles as “Crypto Mom”—who now leads the agency’s digital asset task force.
Launched shortly after Trump’s return to office, the task force was designed to replace adversarial oversight with an approach that prioritizes collaboration and market development. Peirce and other Trump-aligned regulators argue that excessive litigation stifles innovation and cedes technological leadership to global competitors.
The retirement plan reversal also directly undermines the Biden-era Labor Department guidance that had cast a chilling effect on crypto inclusion. That 2022 memo arrived shortly after Fidelity launched a product enabling workers to allocate a portion of their 401(k) contributions to Bitcoin—a move that, at the time, was met with strong regulatory pushback.
Now, with Trump back in office and crypto-friendly officials in charge, that cautionary tone is being replaced by one of strategic encouragement. The collapses of FTX and other high-profile crypto firms—events that defined the previous regulatory regime—no longer dominate the policy narrative. Instead, officials are recalibrating to support growth while introducing industry-friendly guardrails.
This shift aligns with a growing belief within GOP policy circles that the U.S. must compete in the global race to develop Web3 infrastructure and digital capital markets—or risk falling behind to nations with more supportive frameworks.
Quick Facts
- The Trump administration has rolled back a 2022 Labor Department memo that warned against crypto investments in 401(k) plans.
- Labor Secretary Lori Chavez-DeRemer says investment decisions should rest with fiduciaries, not regulators.
- The move reflects a broader pro-crypto stance by the Trump administration, including SEC reforms and dropped lawsuits.
- Lawsuits against Coinbase and Kraken are reportedly being withdrawn under new SEC leadership.
- Fidelity’s Bitcoin 401(k) product, once criticized by federal regulators, may now gain broader traction under this policy shift.
