Trump Labor Dept. Ditches “Extreme Care” Crypto Warning, Paving the Way for 401(k) Bitcoin Bets
The Labor department returns to a neutral stance leaving crypto inclusion decisions up to fiduciaries.
Critics warn the move could expose retirement investors to heightened risks from crypto market volatility.
The Trump Administration has officially rescinded Biden-era guidance from the Department of Labor (DOL) that urged employers to exercise “extreme care” before offering cryptocurrency investments as an option to workers in their 401(k) retirement plans. While not an outright ban, the 2022 guidance warned fiduciaries that they could be held liable for losses incurred by crypto investments added without due diligence.
Labor Secretary Lori Chavez-DeRemer said in a statement that the former guidance was a bid by the Biden Administration to “put their thumb on the scale” against digital asset investments.
We’re rolling back this overreach and making it clear that investment decisions should be made by fiduciaries, not DC bureaucrats.
The department reaffirmed its neutral position on digital assets, “neither endorsing, nor disapproving of” the inclusion of cryptocurrencies being included in 401(k) plan menus.
Related: Bitcoin Breaks Away from Gold as Investors Pivot to Crypto, JPMorgan Finds
A New Era for Digital Assets
The policy shift arrives amid broader crypto enthusiasm from President Trump who recently launched a $TRUMP meme coin that significantly increased his net worth. Vice President JD Vance told attendees at the Bitcoin 2025 Conference this week, “I’m here today to say loud and clear, with President Trump, crypto finally has a champion and an ally in the White House.”
In March, President Trump signed an Executive Order establishing a Strategic Bitcoin Reserve, made up of BTC seized by law enforcement, with plans to grow the reserve through additional cryptocurrency purchases.
Bitcoin has risen 60% since his re-election and is now trading at US$111,000 (AU$172,820).
Related: Congress Could Seed a US Bitcoin Reserve Through Mining Incentives, Says VanEck
The rollback has attracted criticism from some in the industry. Stephen Hall, legal director and securities specialist at Better Markets, said that the move was “another flagrant example of the Trump Administration putting crypto profits ahead of the economic stability and security of Americans.” He argued that the 2022 guidance protected millions from major losses during the crypto market collapse.
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Filed under: Bitcoin - @ May 29, 2025 6:25 am