Investment in digital assets from 401k plans is now an option, following the departure of the anti-crypto guide
In a significant shift for retirement savings in America, the U.S. Department of Labor (DOL) has revoked the 2022 guidance that urged extreme caution before including cryptocurrencies in 401(k) plans. This move marks a return to a historically neutral and principles-based fiduciary standard for cryptocurrencies and other alternative assets in 401(k) retirement plans.
The DOL's new stance was officially announced in August 2025, when President Donald Trump signed an executive order directing the department to reassess and allow cryptocurrencies—along with private equity and real estate—in 401(k) plans. The order explicitly encourages removing government-imposed barriers, effectively letting individuals and fiduciaries decide whether to include cryptocurrencies in retirement portfolios.
Broader Discretion for Fiduciaries
With this change, fiduciaries now have broader discretion to include cryptocurrencies as an option in 401(k) plans, judged under existing ERISA fiduciary standards (prudent, context-specific evaluation), rather than facing an "extreme care" standard unique to crypto. This shift may prompt wealth managers and plan providers to reconsider cryptocurrencies, potentially unlocking billions of dollars into digital assets and crypto-related funds like ETFs, thus further integrating crypto into traditional retirement investing.
A Shift in Regulatory Stance
The DOL’s approach aligns with Supreme Court precedent (Fifth Third Bancorp v. Dudenhoeffer), emphasizing fiduciary decisions based on plan-specific risk profiles and goals, without categorical restrictions on asset classes. This political and regulatory shift favors expanded access to alternative assets in retirement accounts, supporting broader diversification strategies for savers.
Implications for the Future of Retirement Investing
While cryptocurrencies are not mandated or specifically endorsed, the U.S. federal regulatory environment now permits their inclusion in 401(k) plans under standard fiduciary care rules, no longer subject to the heightened cautionary restrictions of the earlier 2022 guidance. This change opens doors for increased crypto adoption in retirement investing, though fiduciaries remain responsible for prudent risk assessment tailored to their plans.
The revocation of the guide marks an important milestone in the history of retirement savings for Americans. It may influence the international perception of digital assets, consolidating the United States' position as a reference in the adoption of financial technology. The revocation of the guide may mark the beginning of a new stage where innovation and prudence combine to offer a broader and more modern vision of retirement savings for Americans.
The revocation of the guide can open up new opportunities for integrating assets such as Bitcoin or other cryptocurrencies into retirement funds. It may potentially attract a younger and more technologically inclined segment of the population that sees crypto assets as a strategic value for their financial independence. The U.S. Department of Labor has revoked the 2022 guide that restricted the inclusion of cryptocurrencies in 401(k) retirement plans. The elimination of the 2022 guide may mark the beginning of transforming the way future generations will plan their retirement, allowing for greater integration of digital assets into retirement plans and bringing the economy of the future in line with emerging digital trends.
The revocation potentially attracts crypto companies and startups seeking a more predictable legal framework. The inclusion of cryptocurrencies in retirement plans will continue to be a decision made by fiduciaries, who must prudently evaluate the risks. The statement by Secretary of Labor Lori Chavez-DeRemer clarified that the "extreme caution" standard, imposed in 2022, had no legal basis and deviated from the traditional approach of the department. The change can open the door to greater entry of cryptocurrencies into retirement schemes. The decision can potentially allow millions of potential savers greater exposure to digital assets.
- The shift in the DOL's stance now allows fiduciaries to make decisions about investing in cryptocurrencies in 401(k) plans under the existing ERISA fiduciary standards, which means they can now consider it as part of broader diversification strategies for savers, while still adhering to specific risk assessments.
- The revocation of the guideopens up new opportunities for integrating digital assets such as Bitcoin or other cryptocurrencies into retirement funds, potentially appealing to a younger, more technologically inclined demographic who view cryptocurrencies as a strategic investment for their financial independence.
