Investment decisions “should not be taken by bureaucrats,” said government official.
The Labor Department acknowledges that the warning was an overreach.
The United States Department of Work withdrew a guide issued in 2022 that discouraged the inclusion of Bitcoin (BTC) and cryptocurrencies as an investment option in retirement plans 401 (K).
In that 2022 document, the Labor Department warned about possible legal risks for those who decided to incorporate cryptoactive ones into retirement portfolios, pointing out concerns about fraud, volatility and security. Although did not explicitly prohibit the use of cryptocurrencieshe did urged to exercise “extreme attention” and warned of possible loss responsibilities.
Now, that position has been left without effect. As explained by the agency, the language of the previous guide deviated from the requirements established in the Employee Retirement Income Safety Law and marked a break with the historically neutral approach to the department regarding investment decisions.
The Secretary of Labor, Lori Chavez-Deremer, held that It was an “overreach” by the previous administration And he said that “investment decisions should not be taken by Washington bureaucrats.”
This change is aligned with the most favorable attitude towards Bitcoin and cryptocurrencies that – as cryptoics has reported – took the Donald Trump government.
The measure can open the door to a greater adoption of Bitcoin as a reservation asset for retirementadding to plans 401 (k) to the growing current of cryptocurrency investment in the United States.
Matt Hougan, director of the Bitwise investment company, commented: «There are 9 billion dollars in assets 401 (K). Currently, approximately 0% is invested in cryptocurrencies. That will change ».
