The 2022 compliance release that had previously cautioned fiduciaries against including crypto investment options in 401(k) retirement plans was officially withdrawn by the U.S. Department of Labor (DOL), as stated in a May 28 announcement.
The withdrawal of “Compliance Assistance Release No. 2022-01” was announced, which had previously instructed fiduciaries to proceed with “extreme care” when considering digital assets for inclusion in retirement plan investment offerings.
The Department has shifted back to a neutral approach, aligning with the statutory provisions outlined in the Employee Retirement Income Security Act (ERISA), the federal law regulating private-sector retirement plans.
Neutral Stance Reinstated on Crypto in Retirement Plans
In a formal statement, the Employee Benefits Security Administration admitted that the 2022 “extreme care” guideline lacked a statutory foundation and deviated from the department’s earlier principles-based framework.
Lori Chavez-DeRemer, the U.S. Secretary of Labor, issued a statement.
We’re rolling back this overreach and making it clear that investment decisions should be made by fiduciaries, not D.C. bureaucrats.
Although the Department’s announcement neither approves nor rejects cryptocurrency as an option for retirement plans, it clearly states that fiduciaries hold the investment authority under ERISA.
The statement reaffirms that fiduciaries remain obligated under law to act in the best interest of plan participants. However, such assessments must be conducted using a uniform evaluative standard rather than directives that target specific asset classes.
Breaking from ERISA Tradition: New DOL Guidance Reshapes Crypto Policy
A compliance notice was issued by the Department on March 10, 2022, cautioning plan fiduciaries to apply heightened scrutiny before including crypto investment options.
The document highlighted concerns such as crypto’s price fluctuations, storage challenges, and ambiguous regulatory landscape as reasons for prudence—conditions that, according to critics, imposed stricter requirements than those outlined in ERISA’s fiduciary duty framework.
Traditionally, a neutral position on individual asset classes was maintained by the Department, with fiduciaries being expected to assess investment options based on factors such as risk, cost, and alignment with the plan’s objectives.
The 2022 release marked a departure from that precedent by emphasizing crypto as deserving particular caution, even though ERISA mandates that fiduciaries perform their duties “with the care, skill, prudence, and diligence under the circumstances then prevailing.”
The Department’s updated guidance reinforces that decisions regarding investments should be context-specific and require a careful assessment of all pertinent elements.
With the withdrawal of Compliance Release 2022-01, the Department restores consistent application of fiduciary principles outlined in ERISA, enabling retirement plan administrators to individually evaluate crypto investment options in accordance with current legal standards.
 retirement plans was officially withdrawn by the U.S. Department of Labor (DOL), as stated in a May 28 announcement.){kind=link}