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Trump Administration Removes Crypto Warnings from 401(k) Retirement Plans

The Trump-era regulators have withdrawn previous cautions on including cryptocurrencies in 401(k) plans, shifting to a neutral position that leaves investment decisions to fiduciaries.

Eleanor Vance
Published • Updated June 15, 2025 • 3 MIN READ
Trump Administration Removes Crypto Warnings from 401(k) Retirement Plans

In 2022, retirement plan regulators under the previous administration issued a cautionary advisory on cryptocurrencies, urging those managing 401(k) plans to exercise significant caution before adding digital currencies to investment options.

At that time, the Labor Department emphasized that cryptocurrencies differ substantially from traditional retirement investments and can pose complex challenges even for seasoned investors trying to discern fact from speculation.

Recently, the current administration reversed this guidance, choosing to adopt a neutral stance regarding cryptocurrencies in 401(k) plans.

On May 28, the Labor Department clarified that it would neither endorse nor oppose plan fiduciaries who opt to include digital assets in their retirement investment menus, leaving those decisions to the discretion of the plan managers.

Labor Secretary Lori Chavez-DeRemer stated that the previous administration had imposed regulatory overreach, and that investment choices should remain in the hands of fiduciaries, not government officials.

This policy shift aligns with the Trump administration’s favorable approach toward the cryptocurrency sector, despite ongoing ethical concerns related to the former president and his family’s crypto activities.

However, experts do not anticipate a significant surge in cryptocurrency options within the over 715,000 existing 401(k) plans, which collectively held approximately $8.9 trillion in assets by the end of last year. Retirement plan administrators, who are legally bound to act in the best interests of employees, remain cautious. Many worry about legal liability and tend to favor more conservative investments, which helps explain why digital assets have so far been scarcely included in 401(k) offerings.

Eleanor Vance
Eleanor Vance

A seasoned journalist with 15 years of experience, Eleanor focuses on the intricate connections between national policy decisions and their economic consequences.

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