Retirement funds can buy Bitcoin! The U.S. Department of Labor has revoked the 401(k) crypto assets guidance, unlocking billions of dollars in funds.

According to foreign media reports, the US Department of Labor has withdrawn its cryptocurrency guidance issued in 2022 for 401(k) retirement plans, which means that the Department of Labor has returned to a neutral position, neither encouraging nor opposing the inclusion of cryptocurrencies in retirement plans. (Synopsis: Hong Kong allows cryptocurrency investment immigration!) Crypto is good for more than that? (Background added: UBS: High net worth clients are abandoning the US dollar in favor of gold, cryptocurrencies and Chinese assets) News media accounts on social platform X @DeItaone An important news was released yesterday (28) stating that the US Department of Labor has withdrawn its cryptocurrency guidance issued in 2022 for 401(k) retirement plans: The US Department of Labor withdrew its 2022 on 401(k) Planned Cryptocurrency Guidelines. The guidance had warned trustees not to include cryptocurrencies in 401(k) plans. The guidance emphasizes extreme caution and deviates from the department's traditional neutral position under the Employee Retirement Income Security Act (ERISA). Labor Minister Lori Chavez-DeRemer criticized his previous position that the government was overstepping its authority, arguing that investment decisions should be made by trustees, not bureaucrats. With this revocation, the Department of Labor has returned to a neutral position, neither encouraging nor opposing the inclusion of cryptocurrencies in retirement plans. U.S. LABOR DEPARTMENT RESCINDS 2022 CRYPTO GUIDANCE FOR 401(K) PLANS The U.S. Department of Labor has withdrawn its 2022 guidance that warned fiduciaries against including cryptocurrency in 401(k) plans. That guidance had urged “extreme care,” diverging from the department’s… — *Walter Bloomberg (@DeItaone) May 28, 2025 401(k) What is the program and its cryptocurrency guidelines? 401(k) plan is a widely used employer-sponsored retirement savings plan in the United States that allows employees to deposit a portion of their salary into an investment account in the form of pre-tax, and the funds can be withdrawn at retirement, during which the investment income is tax-free. Under the Employee Retirement Income Security Act (ERISA), the trustees of 401(k) plans are required to manage funds with the highest standards of care and loyalty to ensure the interests of participants. In March 2022, the U.S. Department of Labor issued a guidance (Compliance Assistance Release No. 2022-01) warning about cryptocurrency investments in the 401(k) program. At a time of high volatility in the cryptocurrency market, the guidance requires trustees to exercise extreme caution when considering cryptocurrencies as an investment option, noting that cryptocurrencies' high volatility, regulatory uncertainty, opaque information, and security risks such as hacking can jeopardize retirement savings. The guideline's stance deviates from the Department of Labor's usual neutrality and is considered a restrictive measure against cryptocurrencies. The revocation of the 2022 guidance means that the Department of Labor has returned to a neutral position, allowing trustees to decide whether to include cryptocurrencies based on market conditions and the interests of participants. This policy shift is seen as a positive signal for cryptocurrencies and could have the following implications: Reduced regulatory hurdles: The revocation guidance removes regulatory resistance to cryptocurrency investments, creating the conditions for more 401(k) program providers to explore cryptocurrency products. Increased market acceptance: A neutral stance has helped further consider cryptocurrencies as mainstream assets, especially with products such as Bitcoin ETFs already approved for listing in 2024. Inflow potential: 401(k) Program participants may increase their exposure to cryptocurrencies through self-directed brokerage windows or cryptocurrency funds to attract more retail funds to the market. 401(k) What is the size of the program's funding? According to the Investment Firm Institute (ICI), the total AUM of 401(k) retirement plans in the United States was $8.9 trillion as of December 31, 2024. In terms of capital allocation, 401(k) planned investments are generally concentrated in equity and bond funds. But with the withdrawal of cryptocurrency guidelines, there may be more plans to include digital assets such as Bitcoin ETFs in the future. Even allocating 1% of its funds to Bitcoin would have $89 billion in buying power, equivalent to 809,000 bitcoins at $110,000 per bitcoin. Related reports Conservative traditional funds enter for the first time, two "pension funds" announce their participation in blockchain venture capital funds Michigan proposes 4 crypto bills: pension investment BTC, green mining and tax relief, opposition to CBDC Grayscale | already holds nearly 3% of BTC, Grayscale's new CEO: "Pension funds" are actively expanding the allocation scale "Pension funds can buy bitcoin!" The U.S. Department of Labor revokes 401(k) cryptocurrency guidelines, unlocks tens of billions of dollars" This article was first published in BlockTempo's "Dynamic Trends - The Most Influential Blockchain News Media".