US Labor Department Lifts Bitcoin Discrimination in Pension Funds

The U.S. Department of Labor has rescinded its guidance advising fiduciaries against considering cryptocurrencies as investment options for 401(k) retirement plans.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’ plan to allow the accumulation of Bitcoin in retirement accounts. At that time, the Department issued a directive that sparked negative reactions within the industry.

“The Department of Labor under President [Joe] Biden has made an unfair choice by 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 department, Lori Chavez-DeRemer.

The press release highlights that the shift in the department’s stance marks a return to a “neutral position.” They emphasized that they neither encourage nor endorse fiduciaries’ decisions to include cryptocurrencies in investment strategies.

It’s worth noting that in April, the Federal Reserve rescinded its anti-cryptocurrency recommendations.

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