More positive news for cryptocurrencies came from the US, with the US Department of Labor withdrawing its cautionary cryptocurrency guidance for 401(k) plans.
The U.S. Department of Labor has withdrawn its previous guidance and restrictions for 2022 that prevented retirement administrators from considering Bitcoin (BTC) and cryptocurrencies as 401(k) investment options, The Block reports.
The Labor Department has become the latest agency to walk back previous statements restricting cryptocurrency activity since US President Donald Trump took office in January.
US Labor Secretary Lori Chavez-DeRemer announced the withdrawal of guidance that urged executives to “exercise extreme caution” before adding crypto to their investment strategies in 2022.
Stating that the ministry is responsible for protecting employees and retirees, Lori Chavez-DeRemer argued that cryptocurrency investment decisions should be left to the relevant institutions, not bureaucrats.
He criticized the department’s previous stance as excessive government intervention. DeRemer blamed the Biden administration, adding that the department now takes a neutral position on cryptocurrencies in retirement plans.
“The Biden administration's Department of Labor has chosen to put its finger on the scale by taking a biased stance on cryptocurrencies.
But we push back on this excess and make clear that investment decisions should be made by fiduciaries, not DC bureaucrats.”
*This is not investment advice.
