DOL Rescinds 2022 Guidance on Cryptocurrency in 401(k) Plans
Published May 28, 2025
The U.S. Department of Labor (DOL) Employee Benefits Security Administration issued Compliance Assistance Release No. 2025-01 rescinding a 2022 compliance release that previously discouraged fiduciaries from including cryptocurrency options in 401(k) retirement plans.
The 2022 guidance directed plan fiduciaries to exercise “extreme care” before adding cryptocurrency to investment menus. The standard of "extreme care" is not found in the Employee Retirement Income Security Act (ERISA) and differs from ordinary fiduciary principles thereunder.
By rescinding the 2022 guidance, DOL reaffirms its neutral stance, neither endorsing, nor disapproving of, plan fiduciaries who conclude that the inclusion of cryptocurrency in a plan’s investment menu is appropriate. When evaluating any particular investment type, a plan fiduciary's decision should consider all relevant facts and circumstances and will "necessarily be context specific."