The U.S. Department of Labor (DOL) has ditched 2022 guidance that prevented fiduciaries from offering crypto in 401(k)s.
The DOL previously urged the firms responsible for managing retirement plans to exercise "extreme care" when offering crypto.
The government was essentially discouraging the inclusion of Bitcoin and other cryptocurrencies in 401(k)s. It stated that digital assets remain "highly speculative," while also warning about price volatility. The DOL also expressed concerns regarding custody issues and the regulatory environment.
Now that the guidance has been scrapped, fiduciaries can consider cryptocurrency investment without facing additional scrutiny. Now, the DOL is neither encouraging nor discouraging the inclusion of crypto in retirement plans.
Lori Chavez-DeRemer, who was confirmed as the new U.S. labor secretary in March, criticized the now-rescinded policy as federal overreach.
It is worth noting that there is more than $7 trillion in American retirement plans. The recent policy reversal does not mean that Bitcoin or XRP will become part of all retirement plans tomorrow, but it represents a significant win for an industry that is gaining more legitimacy.
As reported by U.Today, mutual fund behemoth Fidelity made it possible for employers to include Bitcoin in their 401(k) plans back in 2022.
U.Today Editorial Team
Vladislav Sopov