DOL Eases Stance on Crypto in 401(k)s Amid Trump Push for Broader Retirement Investment Options

By Perplexity News Staff | Updated March 17, 2026

In a significant shift for retirement plan fiduciaries, the U.S. Department of Labor (DOL) has repealed its 2022 guidance that cautioned against including cryptocurrency investments in 401(k) plans, signaling a more neutral approach to digital assets under the Employee Retirement Income Security Act (ERISA).

The DOL’s Compliance Assistance Release No. 2025-01, issued on May 28, 2025, marks a departure from the agency’s previous “extreme care” directive. Previously, the 2022 guidance expressed “serious concerns” about the prudence of exposing 401(k) participants to cryptocurrencies, warning fiduciaries of potential investigations for breaching duties of prudence and loyalty.[1][2] Now, the DOL neither endorses nor disapproves of such investments, emphasizing that fiduciaries must simply apply standard ERISA duties when evaluating cryptocurrencies, tokens, coins, and other digital assets.[1]

Background on the Reversal

The 2022 guidance, issued by the Employee Benefits Security Administration (EBSA), arose amid cryptocurrency’s volatile early development. It highlighted risks like price swings, fraud potential, and lack of regulatory oversight, urging fiduciaries to think twice before adding crypto to plan menus or brokerage windows.[2] Critics, including Sen. Tommy Tuberville (R-Ala.), decried it as overreach, introducing legislation in 2022 to protect savers’ investment choices.[2]

The repeal reflects evolving market maturity and political pressures. Former EBSA acting head Ali Khawar had underscored fiduciaries’ roles in prudent selections, but the new stance aligns with a principles-based approach, avoiding prescriptive barriers.[2]

Fiduciary Duties Remain Paramount

Despite the relaxation, ERISA’s core obligations of prudence and loyalty persist. Fiduciaries must rigorously analyze cryptocurrency options, considering volatility, liquidity, valuation methods, and emerging regulations. For instance, in target-date funds (TDFs) or brokerage windows, plans must scrutinize underlying assets for risk management and fraud safeguards.[1][3]

Legal experts stress that offering crypto signals participant approval by professionals, per precedents like Hughes v. Northwestern University. Fiduciaries should anticipate future rules on disclosures, trading, and compliance, treating them as inevitable amid rapid tech changes.[1]

“ERISA fiduciaries who add cryptocurrency as an investment option must include in their analysis how regulatory requirements may apply to issuance, investment, trading or other activities.”[1]

Trump Administration’s Broader Reforms

The DOL’s move coincides with aggressive pushes under President Trump to expand 401(k) options. An August 2025 executive order directed the Labor Secretary to review ERISA guidance on alternative assets—including crypto, private equity, real estate, debt, equity, credit, and infrastructure—within 180 days. It calls for clarifying fiduciary processes, proposing safe harbors to curb litigation, and coordinating with the SEC and Treasury.[5][6]

The order aims to reduce “ERISA litigation tactics” that constrain fiduciaries, facilitating asset allocation funds with alternatives. It instructs the SEC to revise rules for participant-directed plans, potentially transforming retirement investing.[6]

Criticism and Ongoing Concerns

Not all welcome the changes. Sen. Elizabeth Warren, in a January 2026 letter to the SEC, demanded answers on crypto in 401(k)s by January 27, citing risks to savers.[5] Critics like the Economic Policy Institute warn that promoting volatile assets endangers retirement security and the economy, noting historical agency discouragement of high-risk investments.[7]

Prohibited transaction rules also loom: Crypto firms offering their own tokens in plans risk self-dealing accusations, necessitating legal scrutiny.[3] Markets’ minimal oversight persists as a key worry.[8]

Recent IRS Developments

Complementing DOL shifts, the IRS on March 5, 2026, proposed regulations easing Form 1099-DA reporting for digital asset brokers. Brokers can now terminate ties with non-consenting customers instead of mailing paper statements, and consent withdrawals are barred—alleviating burdens post-2025 repeal of DeFi broker rules under Trump.[4] Notice 2026-4 seeks comments on staking rewards reporting via Form 1099-B or 1099-MISC.

Implications for Plans and Providers

Fiduciaries are advised to engage counsel, update investment policy statements, and structure offerings to meet ERISA standards. Asset managers should prepare for “plan asset” issues and regulatory scrutiny.[6]

Recommended Actions for Fiduciaries

Action	Description
Review Policies	Assess and revise investment policy statements for alternative assets.
Legal Consultation	Evaluate ERISA compliance and prohibited transactions.
Risk Analysis	Scrutinize volatility, regulation, and future rules.
Monitor Guidance	Track DOL, SEC, and IRS updates.

This evolving landscape offers opportunities but underscores the need for caution. As crypto matures, fiduciaries balancing innovation and protection will shape the future of retirement savings.

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