05.06.22
Republican Senator Floats Bill to Bolster Crypto Options in 401(k) Plans
by: Brian Croce
A bill that would bar the U.S. Department of Labor (DOL) from issuing a regulation or guidance that limits the type of investments 401(k) plan participants can choose through a brokerage window has been introduced by U.S. Senator Tommy Tuberville (R-AL). The measure is in response to recent DOL guidance for 401(k) plan fiduciaries telling them to "exercise extreme care" before selecting cryptocurrency as an investment option in plan menus. Fiduciaries who include such investment options or who allow such investments through self-directed brokerage accounts "should expect to be questioned about how they can square their actions with their duties of prudence and loyalty in light of" potential risks associated with cryptocurrencies, the March 10 guidance said. Tuberville said that his legislation would empower retirement savers to invest as they see fit and ensure that plan sponsors and financial firms are not punished for allowing investors to exercise financial freedom.
Read the full article on Pensions & Investments