The U.S. Department of Labor reversed its 2022 guidance on Wednesday, which discouraged retirement managers from considering cryptocurrency investments in 401(k) plans. This decision marks the latest agency to retract statements limiting digital asset activities. The move signals a shift towards a more neutral stance on crypto investments.
Labor Secretary Lori Chavez-DeRemer stated that investment decisions should be made by fiduciaries, not government officials. This decision rolls back what she described as government overreach. The previous guidance had raised concerns about the risks associated with crypto investments.
The Labor Department joins other agencies like the FDIC and Federal Reserve in reversing restrictive crypto policies. In March, the FDIC reversed standards requiring notification before crypto-related activities. These changes reflect a broader trend toward a more accommodating regulatory environment for digital assets.
This article is based on our author's analysis of materials taken from the following resource: Reuters.