TechFlow news, May 28 — According to an official announcement, the U.S. Department of Labor's Employee Benefits Security Administration announced on May 28 that it is rescinding the 2022 compliance guidance, which previously required fiduciaries of 401(k) retirement plans to exercise "extreme caution" when including cryptocurrency options.
Labor Secretary Lori Chavez-DeRemer said: "The Biden administration's Department of Labor attempted to influence the market. We are reversing this overreach and making clear that investment decisions should be made by fiduciaries, not Washington bureaucrats."
This reversal means the Department of Labor is returning to its longstanding neutral stance—neither supporting nor opposing fiduciaries' decisions to include cryptocurrency in retirement plan portfolios—and reaffirming that investment judgment should align with the core principles of the Employee Retirement Income Security Act (ERISA).
