Criticizing Trump-backed cryptocurrencies in retirement plans, financial analyst Peter Schiff voices his disapproval.
In a significant development, the U.S. Department of Labor (DOL) has taken a neutral stance towards cryptocurrency in 401(k) plans, as outlined in Compliance Assistance Release No. 2025-01 issued on May 28, 2025. This change in approach rescinds the stricter 2022 guidance that advised fiduciaries to exercise "extreme care" due to concerns about fraud, volatility, and custody.
Under the new policy, fiduciaries are required to apply a standard of prudence based on "facts and circumstances" relevant to the specific plan, evaluating crypto investments like any other asset class without inherent restrictions.
A major catalyst for this change is the August 7, 2025, executive order signed by President Donald Trump titled "Democratizing Access for 401(k) Investors". This directive instructs the Department of Labor to revise rules and guidance regarding the inclusion of alternative assets, including cryptocurrency, private equity, and real estate, in 401(k) and other defined contribution plans. It also explores the creation of fiduciary "safe harbors" to reduce litigation risks associated with adding alternative assets and collaborates with the Treasury and SEC on regulatory adjustments to facilitate broader inclusion of crypto and similar investments in retirement accounts.
While this executive order does not immediately change the law, it sets a clear policy direction to expand access and encourage regulatory updates supporting the inclusion of crypto in 401(k) plans. It aims to modernize the $12.5 trillion U.S. retirement market by potentially increasing the availability of crypto and other alternative investments to individual savers, contingent on forthcoming Labor Department rules and stakeholder input.
Key practical implications are that plan fiduciaries must still adhere to prudence, loyalty, and diversification duties under ERISA before adding crypto options, documenting decisions carefully to mitigate legal risk. Although no legal barrier existed prior to the executive order to offering crypto in 401(k)s, the biggest ongoing concern remains the inherent risks and volatility of crypto investments, which require cautious, context-specific evaluation.
If implemented broadly, even a modest crypto allocation (e.g., 1% of current 401(k) assets) could potentially channel tens of billions of dollars into crypto markets, presenting significant market impact considerations.
Notably, economist Peter Schiff criticized Donald Trump's proposal to allow cryptocurrencies in 401(k) accounts on August 8, 2025, via Twitter, expressing concerns about exacerbating retirement savings issues.
Meanwhile, cryptocurrency journalist Sophia Panel, with over 10 years of experience at Coincu.com, continues to educate underserved communities about blockchain potential and focus on user engagement and education through her podcasts on platforms such as SoundCloud, Podcasts.com, Podbean, Spotify, Podomatic, and more. Panel's work specializes in crypto content strategy, SEO, and web3 storytelling.
As of August 8, 2025, the circulating supply of Bitcoin stands at 19,903,506 BTC, with a 1.66% price increase over the past 24 hours, trading at $116,519.16 with a market cap of $2.32 trillion according to CoinMarketCap. The debate around the role of cryptocurrency in retirement savings continues, intersecting with volatile market dynamics and potential regulatory challenges.
[1] U.S. Department of Labor. (2025, May 28). Compliance Assistance Release No. 2025-01. Retrieved from https://www.dol.gov/agencies/ebsa/employers-and-advisers/laws-and-regulations/laws-and-regulations/compliance-assistance-release-no-2025-01
[2] The White House. (2025, August 7). Executive Order on Democratizing Access for 401(k) Investors. Retrieved from https://www.whitehouse.gov/briefing-room/presidential-actions/2025/08/07/executive-order-on-democratizing-access-for-401k-investors/
[3] U.S. Department of Labor. (n.d.). Fiduciary Responsibility Under ERISA. Retrieved from https://www.dol.gov/agencies/ebsa/employers-and-advisers/laws-and-regulations/laws-and-regulations/erisa
[4] Coincu Research. (2025, August 10). The Impact of Cryptocurrency in 401(k) Plans. Retrieved from https://www.coincu.com/news/articles/the-impact-of-cryptocurrency-in-401k-plans
[5] InvestmentNews. (2025, August 12). Trump's executive order aims to expand 401(k) investment options. Retrieved from https://www.investmentnews.com/news/trumps-executive-order-aims-to-expand-401k-investment-options-160899
- The new DOL policy requires fiduciaries to evaluate crypto investments like any other asset class, applying a standard of prudence based on "facts and circumstances" relevant to the specific plan.
- An executive order signed by President Donald Trump on August 7, 2025, aims to expand retirement investment options by revising rules and guidance regarding the inclusion of alternative assets, including cryptocurrency, in 401(k) and other defined contribution plans.
- If implemented broadly, even a modest crypto allocation in 401(k)s could potentially channel tens of billions of dollars into the crypto markets, presenting significant market impact considerations.
- Cryptocurrency journalist Sophia Panel continues to educate underserved communities about blockchain potential and focuses on user engagement and education through her podcasts, which are available on various platforms such as SoundCloud, Podcasts.com, Podbean, Spotify, and Podomatic.
