U.S. Labor Department Reverses Stance on Cryptocurrency in Retirement Plans

According to Foresight News, the U.S. Department of Labor has withdrawn its 2022 guidance that cautioned trustees against including cryptocurrencies in 401(k) plans. The previous guidance urged "extreme caution," which contradicted the department's traditionally neutral stance under the Employee Retirement Income Security Act (ERISA). Labor Secretary Lori Chavez-DeRemer criticized the earlier position as government overreach, asserting that investment decisions should be left to trustees rather than bureaucrats. With this reversal, the department has returned to a neutral position, neither encouraging nor discouraging the inclusion of cryptocurrencies in retirement plans.