U.S. President Donald Trump is allowing Americans to add %Cryptocurrencies, including meme coins and non-fungible tokens (NFTs), to their 401(k) retirement accounts.
Under direction from the Trump administration, the U.S. Labor Department has rescinded guidance put in place by former President Joe Biden that sought to safeguard 401(k) plans from digital assets such as %Bitcoin (CRYPTO: $BTC) and %Dogecoin (CRYPTO: $DOGE).
President Biden’s government had urged employers to exercise “extreme care” before making crypto available to their workers through retirement plans, citing “significant risks of fraud, theft, and loss.”
But now, the U.S. Labor Department has withdrawn that guidance in full and opened 401(k) plans up to add a wide range of cryptocurrencies, including highly speculative meme coins.
The Labor Department said it is adopting a “neutral approach” to investment types and strategies associated with retirement accounts.
Investment groups and retiree advocates were quick to criticize the move, with the Institute for the Fiduciary Standard calling the Trump administration’s decision a “big mistake.”
Critics also note the move to open 401(k) retirement plans to crypto comes as President Trump promotes his own (CRYPTO: $TRUMP) meme coin that’s added billions of dollars to his net worth.
On the election campaign trail last year, President Trump promised to make the U.S. the “crypto capital of the world.”
Some observers say that opening 401(k) plans to risky investments such as crypto could lead to future problems for retirement plan administrators.
In future, employers could be sued by 401(k) investors if their crypto investments decline, say some analysts who also note that there’s currently no regulations pertaining to cryptocurrencies.
Bitcoin is trading at $108,500 U.S., having gained 16% this year.
