The Department of Labor under Trump's administration has rescinded guidelines on cryptocurrency for retirement plans, potentially changing the market significantly.
Changes in Crypto Investment Regulation
On May 28, 2025, the U.S. Department of Labor rescinded cryptocurrency guidelines issued by the Biden administration. This regulatory change allows for greater inclusion of cryptocurrencies in retirement plans, potentially increasing institutional investment in the crypto market.
Increased Opportunities for Fiduciaries
The policy initiated by Secretary of Labor Lori Chavez-DeRemer emphasizes fiduciary autonomy over investment decisions without excessive governmental intervention. As Chavez-DeRemer stated, "The Biden administration allowed pressure on the market. We are rolling back this intervention and making it clear that investment choices should be made by fiduciaries, not Washington bureaucrats."
Volatility Risks Remain
Despite the regulatory change, previous guidelines advised caution regarding cryptocurrency investments due to potential volatility and fraud risks. However, with the new policy, experts expect this could shift the dynamics of retirement investments, while fiduciary duties to assess crypto offerings remain in place.
The reversal of guidelines opens new opportunities for investing in cryptocurrencies; however, it is crucial to maintain fiduciary obligations when including these assets in retirement portfolios.
