US Labor Dept. Urged to Rescind Crypto Guidance as Pushback Grows

The US Department of Labor continues to receive pushback on guidance issued in March restricting crypto for use in 401(k) retirement plans

article-image

Department of Labor | Source: Shutterstock

share
  • The US President’s executive order calls for a unified approach to crypto regulation and innovation
  • The Crypto Council for Innovation said Wednesday the Department of Labor’s guidance, issued in May, takes a one sided-approach to the nascent asset class

A crypto industry body in the US is urging the Department of Labor (DOL) to reconsider its crypto guidance for retirement plans, amid mounting pushback from concerned community members.

The Crypto Council for Innovation (CCI) said Wednesday the DOL’s guidance is inconsistent with directives from the White House and President Biden’s Executive Order for the nascent asset class.

In a letter penned to the department’s Acting Assistant Secretary Ali Khawar, CCI is asking DOL to rescind its Release No. 2022-01 guidance, issued in March, that precludes 401(k) administrators from including crypto investment options in their plans.

Regulators are now weighing up whether to issue an official rule that would address the appropriateness of crypto in 401(k) plans, Bloomberg reported Wednesday.

DOL’s guidance imposes a higher standard of care for crypto when compared to other financial options for 401(k)s by taking a one-sided and highly negative view, according to CCI.

The DOL is tasked with overseeing the security of the retirement, health and other workplace-related benefits of US employees.

It comes as the department stares down a legal challenge by 401(k) provider ForUsAll, which filed its lawsuit earlier this month claiming the department’s move to restrict the use of crypto in retirement plans is “arbitrary and capricious.”

A month after the DOL’s guidance was issued, Boston-based financial services provider Fidelity Investments moved to allow individuals to allocate a portion of their retirement savings to bitcoin through the company’s 401(k) investment lineup.

“CCI is deeply concerned…based on a factually and legally flawed analysis,” the council said in its letter. “We also urge the Department to commence a more open, inclusive and deliberative process to develop guidance for the inclusion of crypto assets on 401(k) investment menus.”

President Biden’s “Executive Order on Ensuring Responsible Development of Digital Assets” signed in March of this year, calls for a unified approach to regulating and evaluating cryptocurrencies.

It marked the first time the executive branch signed such an order for the industry and was welcomed by investors and businesses alike, though it fell short of providing clearer regulatory guidelines many were asking for.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 24 - 26, 2026

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Monad SR Report Graphic.png

Research

Monad is a new Layer 1 blockchain designed as a high performance, EVM-compatible platform.

article-image

Engineers from MetaMask, Coinbase, Google, and the Ethereum Foundation make the case for onchain AI agents via ERC-8004

article-image

Legacy payments firm partners with Anchorage Digital to issue a dollar-pegged token under new US stablecoin law

by Blockworks /
article-image

As Solana ETFs launch but network REV trends lower, Jito sits at the intersection of new capital inflows and microstructure improvements

article-image

The Truth Social parent will integrate Crypto.com Derivatives North America, allowing users to trade prediction contracts under federal oversight

by Blockworks /
article-image

Partnership surpasses $2 billion in staked assets and adds support for new Proof-of-Stake networks

by Blockworks /
article-image

The tokenization leader will merge with Cantor Equity Partners II, becoming the first public firm focused on securities tokenization

by Blockworks /