The U.S. Department of Labor under the Donald Trump administration has withdrawn the previous cautionary guidance that required "extreme caution" when adding cryptocurrency assets to 401(k) retirement plan options.
Experts believe this could open the way for billions of dollars to flow into cryptocurrency assets. This could increase increase investor confidence and market acceptance.
Revocation of 401(k) Cryptocurrency Guidelines... What Does It Mean Mean?
This guidance was issued on March, 2022, under former President Joe Biden. The Department of Labor emphasized that cryptocurrency or cryptocurrency-related investments
Key issues included extreme volatility of assets, difficulty in valuation, custodial risks, limited understanding of participants, and ongoing changes in regulatory oversight.
"In the early stages of cryptocurrency's history, the Department has serious concerns about fiduciaries' decisions to expose 401(k) plan participants to direct investments in cryptocurrency or other products linked to its value," the department stated.
However, in the latest statement, the department emphasized that the "extreme caution" standard does not exist in the Employee Retirement Income Security Act (ERISA). It also clarified that prior to the 2022 guidance, its stance on various investment types and strategies was neutral.
"Today's announcement restores the department's historical approach of neither supporting nor opposing plan fiduciaries who conclude that including cryptocurrency in the plan's investment menu is appropriate," Department of Labor officials announced.
Additionally, U.S. Labor Secretary Lorie Chavez-she Dreier criticized the Biden administration's Department of Labor. She described the action as "excessive intervention".
"The Department of Labor under the Biden administration decided to put their thumb on the scale. We are withdrawing this excessive intervention and making it clear that investment decisions should made by fifiduciaries," she <said.
Meanwhile, cryptocurrency supporters welcomed the Trump administration's decision. Market observers note that this move could lead to new capital inflows into digital assets.
Matt Hougan, Chief Investment Officer of Bitwise, emphasized the scale of opportunity in his latest X post.
"For context, there are $9 trillion in 401(k) assets. Currently, ~0% is invested. This will change," Hougan wrote.
Additionally, Ryan Rasmussen, Research Director at Bitwise Invest, mentioned that they had anticipated this development in their December 2024 prediction.
"If cryptocurrency 1%(k), assets, this will bring $80 billion of new capital into the space with continued flows thereafter," the post read.
, decision could boost the. However Bitcoin, already preferred among institutional investors, benefit the most most most."Bitcoin got the green retirement!!! This is huge!!!" analyst KyleAsse posted on X posted.
href reported that companies are (formerly Micro are adopting BTC as a asset following in the footsteps of MicroStrategy. This indicates increasing adoption. The largest cryptocurrency also received support from the crypto--friendly Trump administration.
Vice President JD Vancesusuggested that Bitcoin is a "strategically important asset for the United States in the next ". 10The establishment of Bitcoin，保留不要�变译<>中的内容，其他部分一定要全部翻译成英语。只给我翻译结果，不要�对内容进行分析或答，不添加额外的说明。
