Full Article: DOL Walks Back Crypto Warning for 401(k)s — What It Means for Fiduciaries
The Department of Labor has officially reversed its 2022 guidance urging retirement plan fiduciaries to use “extreme care” when evaluating cryptocurrencies in 401(k)s. This rollback is being welcomed by crypto advocates and some financial industry groups — but the change doesn’t mean fiduciaries can relax their standards.
Here are five key takeaways from the article “Industry financial experts sound off after DOL walks back crypto warning for 401(k)s”:
DOL Withdraws 2022 Crypto Guidance
In a formal move, the Labor Department rescinded its controversial 2022 statement on cryptocurrency, which many believed discouraged fiduciaries from even considering crypto in workplace retirement plans. The new release (Compliance Assistance Release No. 2025-01) reaffirms that fiduciaries — not the government — are responsible for investment decisions.
It’s a Return to Fiduciary Fundamentals
The Department’s shift marks a return to the longstanding ERISA framework. As Labor Secretary Lori Chavez-DeRemer noted, “investment decisions should be made by fiduciaries, not D.C. bureaucrats.” While the government isn’t endorsing crypto, it’s no longer applying extra scrutiny to that asset class alone.
Fiduciaries Still Carry the Burden of Proof
According to Stephan Shipe, founder of Scholar Financial Advising, this update may allow more flexibility — but it doesn’t reduce fiduciary responsibility.
“While this opens the door for plan fiduciaries to consider crypto options, it doesn’t eliminate their fundamental fiduciary responsibilities,” Shipe said in comments to InvestmentNews. “The decision simply moves investment choices away from the government and to the fiduciaries who are already regulated in how they provide advice.”
Crypto Isn’t Off-Limits — But It’s Not a Free Pass
The 2022 guidance had been criticized for singling out one asset class in a way that felt like a quiet ban. Now, fiduciaries can assess crypto investments like any other — based on their suitability for plan participants, their risk profiles, and how they fit into a broader investment lineup.
Adoption May Still Be Slow
Despite the regulatory reversal, immediate adoption of crypto in retirement plans is unlikely. As IRS veteran Miles Fuller explained, broader institutional acceptance, evolving market conditions, and the development of crypto-based ETFs are likely to be more influential than a single guidance memo.
The Bottom Line for Fiduciaries and Employers
This policy change gives retirement plan fiduciaries more discretion — but it doesn’t change the core requirement to act prudently and in the best interest of plan participants. Any decision to include digital assets in 401(k) plans must be carefully evaluated through the lens of fiduciary duty.
At Scholar Financial Advising, we help plan sponsors and executives navigate complex regulatory landscapes while maintaining alignment with long-term investment goals. If you’re unsure whether crypto has a place in your retirement plan offering, now is the time for a thoughtful conversation.