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

key takeaways

  • 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

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

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.

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Brooklyn, NY

SUN - MON, JUN. 22 - 23, 2025

Blockworks and Cracked Labs are teaming up for the third installment of the Permissionless Hackathon, happening June 22–23, 2025 in Brooklyn, NY. This is a 36-hour IRL builder sprint where developers, designers, and creatives ship real projects solving real problems across […]

recent research

Featured.png

Research

Helium stands at a pivotal moment in its evolution as a decentralized wireless network, balancing rapid growth, economic restructuring, and global expansion. With accelerated growth in domestic DAUs and Hotspots supporting its network, Helium is leveraging strategic partnerships and innovative proposals to scale internationally. The recent implementation of HIP 138, “Return to HNT,” has unified its token economy under HNT, simplifying participation and strengthening liquidity, while HIP 139’s phase-out of CBRS refocuses efforts on scalable Wi-Fi offload. Meanwhile, governance shifts under HIP 141 raise questions about centralization as Nova Labs consolidates control over the roadmap.

article-image

The DeFi Education Fund has ideas on how the crypto-friendly SEC can bring Commissioner Peirce’s vision to life

article-image

“Be prepared to do more with less,” Framework Ventures’ Michael Anderson said

article-image

Q1 may have been “frustrating,” but things are looking brighter for Q2

article-image

Tokens worth 20% of the current supply of the TRUMP memecoin launched by the president are set to be unlocked tomorrow

article-image

A crypto-industry lawsuit is “moot” now that Joint Resolution 25 has been signed into law

article-image

Fed Chair Powell assured markets that the labor market is in “good place,” dependent on price stability