US Labor Department Reverses Guidance on Cryptocurrencies in 401(k) Plans

The U.S. Department of Labor's updated stance allows fiduciaries to consider cryptocurrencies as investment options, reflecting a significant regulatory shift towards digital assets in retirement plans.

Summary

The U.S. Department of Labor has revoked its 2022 guidance that restricted cryptocurrencies in 401(k) plans, enabling fiduciaries to evaluate these assets without regulatory warnings. Labor Secretary Julie Chavez Rodriguez stated that the previous guidelines imposed undue caution and emphasized a neutral approach to investment decisions. This change is part of a broader trend under the current administration to promote cryptocurrency acceptance in retirement planning.

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