DOL Withdrawal of Current Guidance for Retirement Plan Investments: Private Equity, Cryptocurrency, and ESG Investing

BARBRI

This CLE webinar will provide ERISA counsel an in-depth analysis of the impact on the Department of Labor's (DOL) reversal of the Biden-era ESG rule and guidance for cryptocurrency and private equity investing. The panel will discuss the rules, fiduciary issues, and transaction risks associated with such investments, ERISA compliance, exposure to fiduciaries, and best practices for ERISA counsel, plan sponsors, and fiduciaries.

Description

On May 28, 2025, the DOL rescinded its ESG rule and 2022 guidance cautioning plan fiduciaries to exercise care in permitting cryptocurrency and other digital asset investments in retirement plans. The ramifications of this could open the door to significant risks and liability to plan participants and fiduciaries.

In 2022, the DOL issued guidance advising plan fiduciaries on all digital assets, including Ethereum, tokens, and other derivations with stark warnings on (1) fiduciary duty of prudence and personal liability; (2) security risks; (3) recordkeeping and custody; (4) valuation challenges; and (5) liquidity and diversification concerns. However, in light of the recent withdrawal of such guidance, plan sponsors and fiduciaries must grapple with ERISA rules and significantly monitor retirement plan investments to minimize risks and potential claims. In addition, the status of the 2022 ESG rule is to be determined, with the DOL stating that they will engage in new rule-making with no indication of the extent of the forthcoming ESG rule.

The DOL's withdrawal of the ESG rule and prior guidance on digital assets and private equity investing by 401(k)s and other retirement plans forces plan sponsors to evaluate and monitor plan investment options in accordance with their fiduciary duties under ERISA.

Listen as our panel discusses the impact of the DOL's withdrawal of the Biden-era ESG rule and guidance on retirement plan investments in digital assets and transaction risks associated with such investments, and exposure to fiduciaries.

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