Employers that sponsor 401k plans should note that on May 28, 2025, the Department of Labor issued Compliance Assistance Release No. 2025-01, rescinding their 2022 guidance warning 401(k) plan fiduciaries against adding cryptocurrencies as direct investment options under their plans.
That prior 2022 guidance noted “significant risks and challenges to participants’ retirement accounts, including significant risks of fraud, theft, and loss” as part of the reason for advising “extreme care” when considering such cryptocurrency investments.
In rescinding the 2022 guidance, the DOL now takes a neutral stance, neither endorsing nor disapproving of plan fiduciaries who include cryptocurrency among a plan’s options.
Notwithstanding this reversal, plan fiduciaries are still subject to the same fiduciary duties when making investment decisions, whether in cryptocurrency or otherwise.
As always, employers are encouraged to work closely with their ERISA counsel on all compliance matters relating to their 401k plans, including this latest guidance.