Crypto And Retirement Plans
Department of Labor Rescinds 2022 401(k) Guidance
Hardly a day goes by without a seismic shift in global financial regulation, and nowhere is the ground shifting faster than in the fight to define crypto compliance.
In an abrupt about-face, the U.S. Department of Labor (DOL) has rescinded its 2022 guidance that warned fiduciaries to use “extreme care” when considering cryptocurrency in 401(k) plans. The original stance, issued under the Biden administration, cast a chilling effect on the inclusion of digital assets in workplace retirement offerings. With the reversal, the DOL now returns to a neutral position, neither endorsing nor opposing crypto in retirement plans.
The decision signals a broader openness to alternative investments within defined contribution plans and may reignite interest among plan sponsors and asset managers exploring innovation in long-term savings strategies. If investors are permitted to allocate a portion of their 401(k) savings into cryptocurrency, it could significantly expand the market and bring digital assets further into the financial mainstream.
This development would increase exposure to crypto across a broader investor base and raise the stakes for firms, which will need to closely monitor this space from both regulatory and reputational perspectives.
To respond effectively, firms should consider:
- Proactive Oversight – tracking evolving market activity and investor behavior
- Clear Policy Guidance – helping employees and clients navigate the risks associated crypto trading
- Best-In-Class Compliance Platforms – ensuring adherence to regulatory expectations, avoidance of penalties and protection of brand reputation
Next Steps
As digital assets gain traction within traditional retirement portfolios and institutional interest continues to grow, it is essential for compliance teams to be fully prepared to manage the associated risks and regulatory requirements.
StarCompliance (Star) offers purpose-built Crypto Trading Compliance Software designed to help firms stay ahead of regulatory expectations, manage employee crypto activity, and ensure comprehensive oversight. The platform equips compliance officers with the tools they need to navigate the evolving intersection of digital assets and fiduciary duty with confidence.
Key capabilities that support best practices in crypto compliance include:
- Pre-Trade Clearance to assess and approve employee crypto trades before execution.
- Post-Trade Monitoring to eliminate manual review that automatically surface potential violations across 100+ exchanges and 25+ blockchains.
- Reporting & Analytics to support internal reviews and receive automated alerts flagging risky transactions.
With these capabilities, firms can strengthen controls, protect reputations, and maintain trust as digital assets become a larger part of the financial landscape.
In addition, Star recently released an executive brief, Crypto Regulations Decoded. This concise report highlights key global regulatory updates, industry challenges, and expert insights to help strengthen compliance programs.
Crypto Regulations Decoded
