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As of May 28, 2025, the U.S. Department of Labor (DOL) has rescinded its 2022 guidance that previously cautioned 401(k) plan fiduciaries against including cryptocurrency options in retirement plans, urging them to exercise “extreme care.”
Here’s what this means:
* Neutral Stance: The DOL is now taking a “neutral stance” on the inclusion of cryptocurrency in 401(k) plans. This means they are neither endorsing nor disapproving of plan fiduciaries who choose to offer crypto as an investment option.
* Fiduciary Responsibility Remains: Importantly, this change does not alter a plan fiduciary’s fundamental duties of prudence, loyalty, and diversification under the Employee Retirement Income Security Act (ERISA). Fiduciaries still have the responsibility to act solely in the best interests of plan participants and beneficiaries when making investment decisions.
* Removal of “Extreme Care” Warning: The 2022 guidance had a “chilling effect” on many plan sponsors, making them hesitant to offer crypto due to the perceived regulatory risk. By rescinding this, the DOL aims to remove that specific barrier.
* Increased Potential for Crypto in 401(k)s: While it doesn’t mandate crypto options, this rescission opens the door for more employers and 401(k) providers to consider offering cryptocurrency as an investment choice.
* Employer Discretion: Ultimately, whether a 401(k) plan offers crypto options will still depend on the employer (the plan sponsor) and their chosen 401(k) provider.
What does this mean for participants?
If your employer’s 401(k) plan decides to offer crypto, you might have the option to allocate a portion of your retirement savings to cryptocurrencies. However, it’s crucial to remember that:
* Volatility and Risk: Cryptocurrencies are known for their high volatility and inherent risks. Investing in them, especially for retirement savings, requires careful consideration of your risk tolerance.
* Fiduciary Oversight: Even with the DOL’s neutral stance, plan fiduciaries are still obligated to ensure that any investment options, including crypto, are prudently selected and monitored.
* Education is Key: If crypto options become available, it will be vital for participants to educate themselves thoroughly on the risks and potential rewards before investing.
Companies like Fidelity had already announced plans to offer Bitcoin in 401(k)s even under the previous, more cautious DOL guidance. This latest move by the DOL could accelerate the adoption of crypto options across more 401(k) plans in the U.S.

Video courtesy of Escrow.com

Video courtesy of Escrow.com