03.10.22

DOL Warns 401(k) Plan Fiduciaries Against Offering Crypto Investments

by: Mark Schoeff, Jr.

Retirement plan advisors should "exercise extreme care” before making cryptocurrency an investment option in a 401(k) plan, the Department of Labor (DOL) warned Thursday, vowing to investigate those who do. The DOL has noticed over the last few months that financial services firms are marketing cryptocurrency investments to 401(k) sponsors as investments for plan participants, the agency said in a compliance release. “At this early stage in the history of cryptocurrencies, the department has serious concerns about the prudence of a fiduciary’s decision to expose a 401(k) plan’s participants to direct investments in cryptocurrencies or other products whose value is tied to cryptocurrencies,” the compliance release states. “These investments present significant risks and challenges to participants’ retirement accounts, including significant risks of fraud, theft and loss."

Read the full article on InvestmentNews