The U.S. Department of Labor (DOL) announced May 28 that it’s rescinding guidance against retirement plans investing in cryptocurrency.
The announcement came just five days after President Donald Trump hosted a gala dinner at his Virginia golf club for holders of his personal “memecoin,” which is down in price 87% since it was launched in January.
Unlike stocks or bonds, cryptocurrency has no inherent value and generates no income. As an investment, it’s purely speculative, bought in the hopes that it can later be sold to another buyer at a higher price. That’s why in 2022 the DOL advised retirement plans against considering cryptocurrency as a suitable investment.
Employers and unions that sponsor 401(k) and traditional pension plans are legally required to exercise prudence in selecting investment options, and the U.S. Department of Labor is in charge of interpreting and enforcing that law to ensure that retirement savings are protected from financial fraud and risky activities.
