Just over a month ago, we wrote about the Department of Labor’s guidance on cryptocurrency as a 401(k) investment option, and the landscape has already shifted multiple times.
Fidelity Investments made news on April 26 when it announced its new cryptocurrency-based investment option for 401(k) plans and other investment vehicles. If elected by a plan sponsor, this option would allow plan participants to invest up to 20% of their account balance in bitcoin via a “Digital Assets Account” (a custom account that holds bitcoin along with short-term money market investments to provide liquidity for daily transactions). The Department quickly responded, telling the Wall Street Journal it has “grave concerns” about the intended offering and intends further discussions. Senators Elizabeth Warren (D-MA) and Tina Smith (D-MN) also weighed in, sending Fidelity an inquiry about the appropriateness of the offering.
But other investment firms are already working on their own cryptocurrency-based products. There is also a sense within the retirement plan industry that not only more guidance but more consideration of the issue is needed by the Department. In a joint letter to the Department, several financial industry groups representing retirement plan sponsors expressed concerns about the nature of the Department’s cryptocurrency guidance, asking for it to be withdrawn, pending a “robust” notice and comment period, and/or replaced with best practices guidance.
The joint letter also...
President Lee Jae-myung speaks at a Cabinet meeting held at Cheong Wa Dae on October 13. President Lee Jae-myung called for a stern response to the spread of false information regarding eggs rece...