With the collapse of FTX, the reputation of cryptocurrencies suffered significantly, prompting governments to act. Among the measures was the restriction on pension funds investing in cryptocurrencies. This was unsurprising, especially after massive losses experienced by Canadian funds. However, months after the new crypto-friendly administration took office, the United States retracted this decision.
The Key Development in Cryptocurrencies
The U.S. Department of Labor’s Employee Benefits Security Administration reversed guidance that previously discouraged trustees from incorporating cryptocurrency options into 401(k) retirement plans. With the 2022 guidance revoked, pension funds can now invest through Spot Bitcoin 
$77,560 ETFs and cryptocurrencies. The department announced this revocation, stating that the previous guidelines violated neutrality and forced funds away from crypto.
U.S. Labor Secretary Lori Chavez-DeRemer remarked:
“The Biden administration’s labor department has chosen to tip the scales. We are retracting this extremity and clearly stating that investment decisions should be made by fiduciaries, not D.C. bureaucrats.”
The department emphasizes its neutrality towards cryptocurrency for retirement funds and refrains from endorsing or discouraging these investments.
