On May 28, 2025, the Department of Labor (DOL) issued Compliance Assistance Release No. 2025‑01 (the 2025 Release), formally rescinding Compliance Assistance Release No. 2022-01 (the 2022 Release) that had urged fiduciaries to exercise “extreme care” before offering cryptocurrencies in 401(k) plans. This rescission marks a shift from placing higher security on plan fiduciaries that offered cryptocurrencies to a more neutral approach towards plans that offer this digital investment option. 

The DOL’s 2022 Release

In March 2022, the DOL issued the 2022 Release, in which the agency cautioned plan fiduciaries against offering cryptocurrencies in 401(k) plans. This guidance warned fiduciaries that adding crypto options — whether coins, tokens, or any crypto-linked derivatives — could raise serious ERISA concerns due to digital assets’ volatility, valuation challenges, inexpert plan participants, custodial and recordkeeping risks, and evolving regulations. Although non-binding, the guidance conveyed that fiduciaries may breach their fiduciary duties if they fail to exercise “extreme care” when offering cryptocurrencies in 401(k) plans and further indicated the potential for investigations of plans that invested in cryptocurrencies.

The DOL’s 2025 Release

On May 28, 2025, the DOL issued the 2025 Release, which rescinded the “extreme care” fiduciary interpretation and reaffirmed that plan fiduciaries must continue to satisfy ERISA’s duties of prudence and loyalty when selecting investment options. The 2025 Release explained that the “standard of ‘extreme care’ is not found in [ERISA]” and is beyond ERISA’s ordinary fiduciary principles. The 2025 Release further underscored that the DOL is returning to its “historical approach by neither endorsing nor disapproving of plan fiduciaries who conclude that the inclusion of cryptocurrency in a plan's investment menu is appropriate.” 

The DOL’s revised fiduciary standard. 

Moving forward, when evaluating any particular investment type, including cryptocurrencies, a plan fiduciary’s decision must generally satisfy ERISA’s duties of prudence and loyalty, should “consider all relevant facts and circumstances,” and will “necessarily be context specific.” Fifth Third Bancorp v. Dudenhoeffer, 573 U.S. 409, 425 (2014).