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ARTICLE · 09 JUNE 2025

Crypto In And ESG Out—DOL Changes To 401(k) Plan Governance

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Regardless, plan fiduciaries should remain wary of using ESG as a determinative factor in 401(k) plan investment options.

United StatesTechnology
Brian Jebb
Brian Jebb
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The U.S. Department of Labor (DOL) recently announced two significant changes to 401(k) plan investments, signaling an increase in latitude for fiduciaries who wish to make available cryptocurrency investments in their plans while decreasing that latitude with respect to environmental, social, and governance (ESG) investments.1

ESG investments

In connection with ongoing litigation, the Department of Justice (DOJ) stated that the DOL has determined that current ESG rules issued by the Biden administration's DOL will soon be replaced by new rulemaking to be issued by the Trump administration's DOL.2 In attempting to avoid a "chill" on ESG investing, the Biden-era rule made it easier for 401(k) fiduciaries to offer ESG investments in 401(k) plans by clarifying that ESG factors may be relevant when a fiduciary conducts a risk and reward analysis. In addition, the rule eliminated previous documentary requirements issued by the Trump administration that applied when

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