401 retirement plans (K) in the US -free of Bitcoin

By Hannah Pérez

The US Department of Labor. UU. Increased a guide issued in 2022 that discouraged employers to offer cryptocurrencies in plans 401 (k) saving their workers.

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• The US Department of Labor. UU. Change its focus on cryptocurrencies.
• He rescinded an earlier guide of 2022 that discouraged funds 401 (k) to invest in Bitcoin.
• It is the last government agency to retreat in its previous cryptocurrency limitations.
• Trump administration embraces cryptocurrencies and distanced from Biden.

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The United States Department of Labor has terminated an earlier compliance orientation that discouraged retirement plans managers to consider Bitcoin as an investment option in plans 401 (K),

The agency responsible for protecting workers and retirees in the United States, published in 2022 a guide that encouraged pension fund managers to exercise “Extreme attention“Before adding a cryptocurrency to your investment strategies.

Although the document did not directly prohibit investment in Bitcoin and other digital assets, mentioned that such strategy could be considered a breach of the fiduciary duty of managers and expose them to losses. The guide also cited concerns and “significant risks of fraud, theft and loss”, As he remembers CNBC.

At that time, the position of the Labor Department was aligned with other government institutions of the country that, under the administration of Joe Biden, imposed barriers related to the interaction with the cryptocurrency market.

Labor Department relaxes your approach

The language of the previous guide “He deviated from the requirements of the Employee Retirement Income Law and marked a historically neutral approach deviation and based on principles of departments for fiduciary investment decisions“, The federal agency wrote in a statement.

“The Biden administration department made the decision to put its thumb on the balance”Said the Secretary of Labor, Lori Chavez-Deremer in the statement. “We are going back in this overreach And making it clear that investment decisions must be taken by fiduciaries, not by DC bureaucrats ”.

The measure means that employers can now freely offer cryptocurrencies in plans 401 (k) of their workers.

Employees in the United States can access 401 savings plans (K) sponsored by an employer, allowing them to save and invest a part of their salary before taxes, which reduces their taxable income. Contributions are invested in options such as mutual funds and traditional investment vehicles, and earnings grow tax to withdrawal.

Trump administration embraces cryptocurrencies

The withdrawal of the 2022 guide arrives at a time of changes for in regulatory and political panorama in the United States, with the Trump administration assuming a favorable approach around cryptocurrencies.

President Trump has committed to converting the United States into the “Crypto Capital of the World”And has carried out a series of initiatives to promote and support the sector. Among them, Trump has appointed cryptocurrency enthusiasts as officials to direct federal agencies and has signed an order for a national strategic reserve of Bitcoin.

The Labor Department is the last agency to terminate previous statements that limit cryptocurrency activity since Trump assumed the position in January and radically distanced himself from the approach of his predecessor.

In March, the Federal Corporation of US Deposits Insurance.

Also the Office of the Comptroller of the Currency (Occ) and the Federal Reserve (FED) have recently revoked previous orientations that discouraged US banks to participate in cryptocurrencies.

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Hannah Estefanía Pérez / Diariobitcoin

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