XRP Gains Ground as U.S. Labor Dept. Eases 401(k) Crypto Rules

XRP is now poised for broader adoption as the U.S. Department of Labor has officially revoked its previous guidance that discouraged the inclusion of cryptocurrencies in retirement portfolios such as 401(k) plans.

In a move that highlights evolving attitudes toward digital assets, the Department of Labor (DOL) has repealed a 2022 directive that had essentially warned fiduciaries managing retirement funds against the inclusion of crypto assets like Bitcoin and XRP. The earlier guidance characterized cryptocurrencies as excessively unpredictable and speculative, citing price swings, custody challenges, and regulatory uncertainty.

Originally, the guidance urged financial managers responsible for employee retirement accounts to approach digital currencies with significant caution. Although not an outright ban, the language strongly discouraged their use by stressing fiduciary responsibility and the speculative nature of the asset class. XRP, along with Bitcoin and other digital currencies, was boxed out of mainstream retirement offerings as a result.

With this policy reversal now in effect, retirement plan fiduciaries across the United States are free to assess cryptocurrency investments purely on their individual merits—without an underlying threat of federal scrutiny. However, it’s important to recognize that this shift does not equate to immediate inclusion of XRP or other cryptocurrencies in all retirement plans, but it certainly clears a major hurdle in that direction.

The current stance taken by the Labor Department is more balanced than its previous one. Rather than actively guiding against crypto investments, the agency now holds a neutral position. This pivot means fiduciaries can now utilize their own risk assessments and strategies without being shackled by regulatory warnings specifically targeting crypto.

Newly appointed U.S. Labor Secretary Lori Chavez-DeRemer, confirmed in March, has criticized the previous anti-crypto framework as an example of federal overreach. Her leadership appears to have ushered in a more progressive approach that acknowledges the evolving financial landscape, where digital assets are becoming a more accepted component of diversified portfolios.

It’s worth highlighting that retirement savings in the United States surpass $7 trillion, representing a massive pool of capital that was previously cordoned off from the crypto market. The policy update doesn’t guarantee XRP or any other token’s inclusion in these portfolios, but it certainly marks a milestone for broader adoption.

Back in 2022, Fidelity made headlines by allowing Bitcoin allocations in 401(k) plans, a move that at the time faced significant skepticism due to the Department of Labor’s restrictive stance. With today’s changes, employers and plan sponsors now have clearer guidelines and more freedom in deciding to include assets like XRP in their benefit structures.

This major policy shift is another sign that the stigma surrounding digital assets is waning among federal regulators. For Ripple and XRP, already at the heart of cryptocurrency’s push into mainstream finance, the announcement offers a valuable opportunity. It could unlock new streams of institutional capital and position XRP to play a significant role in long-term investment planning.

While challenges still remain—such as market volatility and evolving global regulations—the removal of federal roadblocks sends a powerful message. The crypto industry, especially XRP stakeholders, is being granted the space to evolve alongside traditional financial tools rather than operate on the fringes.

Related: Expert Advice: Sell XRP If You’re Confused

Ultimately, the Labor Department’s new stance reflects a maturation of views and could pave the way for Ripple’s technology and the XRP token to play a more central role in the American financial system.