US Labor Department Lifts Bitcoin Restrictions in Pension Funds

The US Department of Labor has rescinded its guidance advising fiduciaries against considering cryptocurrencies as investment options for 401(k) retirement plans.

In 2022, the department expressed concern over Fidelity Investments’ intention to offer Bitcoin accumulation for retirement savings. At that time, the department issued guidance that was met with backlash from the industry.

“The [President Joe] Biden administration’s Labor Department made a choice, unfairly manipulating the situation. We are rolling back this overreach and clarifying that investment decisions should be made by fiduciaries, not bureaucrats in Washington, D.C.,” stated the current head of the government department, Lori Chavez-DeRemer.

According to the press release, the department’s change in approach confirms its return to a “neutral stance.” The department noted that it neither encourages nor endorses fund managers’ decisions to include cryptocurrencies in investment plans.

In April, anti-cryptocurrency recommendations were rescinded by the Federal Reserve.

Prior to this, the Federal Deposit Insurance Corporation permitted supervised institutions to engage in activities related to digital assets without prior approval.