Trump administration removes crypto barrier in 401(k) plans

The Trump administration has eased restrictions on 401(k) plans allowing investments in cryptocurrency and digital assets. The Labor Department rescinded Biden-era guidance that warned employers about the risks involved with crypto investments. This guidance had advised extreme caution due to potential fraud and loss.

The Trump Labor Department stated, "the standard of 'extreme care' cited by the Biden administration is not found in the Employee Retirement Income Security Act." They are not endorsing or disapproving crypto investments in 401(k) plans. This decision coincides with President Trump's promotion of his $TRUMP meme coin and his goal of making the U.S. the "crypto capital of the world."