Labor Department Reverses Biden’s Anti-Crypto 401(k) Policy

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In a win for crypto advocates, the US Labor Department has scrapped Biden-era restrictions that discouraged digital assets in 401(k) plans. The 2022 guidance, which warned fiduciaries about crypto’s risks, was officially revoked on May 28.

The agency called the old policy an “overreach,” stating that investment decisions should remain with fiduciaries—not government officials. “We’re restoring neutrality and letting experts decide,” said Labor Secretary Lori Chavez-DeRemer.

The Biden administration had claimed crypto was too volatile for retirement savings, but critics, including the American Banking Association, argued the guidance was rushed without public input.