US Lifts Bitcoin Restrictions in Pension Plans

The department then issued an official statement recommending that fiduciaries not include digital assets in their investment strategies. This position has caused considerable discontent among both the cryptocurrency industry and financial market participants. Critics have called the authorities’ actions an attempt at excessive control and interference in market decisions.

Labor Department Commissioner Lori Chavez-DeRemer, representing the current administration under President Donald Trump, noted that the previous restriction was an expression of unfair pressure from federal agencies. According to her, the department now seeks to return the authority to make investment decisions to professional fiduciaries, rather than leaving them to the discretion of Washington officials.

In a new statement, the department emphasizes that it does not support or oppose the inclusion of cryptocurrencies in pension plans. The main goal of the changes is to take a neutral position and give fund managers freedom of choice within the framework of their responsibility to clients.

This is not the first step by federal agencies towards softening their positions on digital assets. Earlier in April, the Federal Reserve lifted similar restrictions on participation in cryptocurrency activities. And the Federal Deposit Insurance Corporation (FDIC) allowed banks under its supervision to interact with digital assets without the need for prior approval of their actions with the regulator.

Thus, there is a clear shift in the US towards more liberal regulation of cryptocurrencies within the context of the traditional financial system. This could open up new opportunities for both market participants and individuals interested in diversifying their retirement savings.