The US Labor Department has revoked its 2022 warning against including cryptocurrencies in 401(k) retirement accounts, potentially exposing savers to higher risks.
The guidance, rescinded on May 28, had advised fiduciaries to avoid crypto due to its volatility and lack of transparency.
Labor Secretary Lori Chavez-DeRemer defended the reversal, calling the prior policy “government overreach.” However, the Biden administration had justified the original guidance by citing crypto’s speculative nature and potential harm to retirees.
The American Banking Association had criticized the 2022 rules for skipping public consultation. Critics now worry the rollback could lead to riskier retirement investments.
