5/29/25 DOL Rescinds Crypto Guidance in 401(k) Plans

May 29, 2025

By Jeff Robertson  &  Iris Tilley

The Department of Labor (“DOL”) has rescinded its 2022 guidance directing 401(k) Plan fiduciaries to exercise “extreme care” before adding a cryptocurrency component or option to a 401(k) plan lineup.

This does not mean that the DOL endorses the use of cryptocurrency as a retirement plan investment option. It means that any cryptocurrency investment option would be evaluated under the same ERISA standards as any other investment option as to its prudency and exclusive benefit to plan participants.

While the DOL’s decision to rescind this guidance is notable, the U.S. Secretary of Labor also noted, in her opinion, that the DOL was “rolling back this overreach and making it clear that investment decisions should be made by fiduciaries, not D.C. bureaucrats.” This may mean we will see lighter enforcement from the DOL. In addition, it puts into question some of the DOL’s recent compliance efforts regarding forfeiture/ERISA expense accounts and missing participants. It also furthers the importance of a clear written Investment Policy Statement and clear written records documenting plan level investment decisions.

The Barran Liebman Employee Benefits Group assists employers with retirement and health plans.  Please contact Jeff Robertson at 503-276-2140 or jrobertson@barran.com, or Iris Tilley at 503-276-2155 or itilley@barran.com, or your regular attorney at Barran Liebman if you have any questions.