DOL Rescinds 2022 Guidance Directed to 401(k) Plan Fiduciaries Investing in Cryptocurrency

July 8, 2025
Hall Benefits Law, LLC

The U.S. Department of Labor (DOL) recently issued Compliance Assistance Release No. 2025-01. This release rescinds the DOL’s 2022 compliance assistance release concerning investments in cryptocurrency by 401(k) plan fiduciaries. 

In its 2022 release, the DOL outlined its concerns about the prudence of 401(k) plan fiduciaries making cryptocurrency investments available to plan participants. The release cited various factors heightening the risk of offering cryptocurrency investments early in their development. Ultimately, the DOL urged fiduciaries to exercise “extreme care” in adding cryptocurrency investment options to their plans. DOL also reminded fiduciaries that it would investigate plans offering these options and take enforcement action against them as needed to protect plan participants. 

DOL’s new release points out that the “extreme care” standard cited in the 2022 release is not explicitly found in the Employee Retirement Income Security Act (ERISA) and is inconsistent with ordinary ERISA fiduciary principles. With this release, the DOL returned to its historical approach of maintaining a neutral stance on all types of investments and investment strategies. Through this approach, DOL advises fiduciaries to evaluate all investment types by considering applicable facts and circumstances before determining whether it is prudent to offer them as options for plan participants. This reasoning and guidance are likely applicable not only to cryptocurrencies but also to the full range of digital assets, including tokens, coins, and other crypto assets.

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Hall Benefits Law, LLC

HBL offers employers comprehensive legal guidance on benefits in mergers and acquisitions, Employee Stock Ownership Plans (ESOPs), executive compensation, health and welfare benefits, healthcare reform, and retirement plans. We counsel a wide spectrum of clients including small, mid-sized, and large companies, 401(k) investment advisors, health insurance brokers, accountants, attorneys, and HR consultants, just to name a few. HBL is passionate about advising clients, and we are dedicated to our mission: to provide comprehensive, personalized, and practical ERISA and benefits legal solutions that exceed client expectations.

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