Bloomberg Law
June 6, 2022, 9:20 AM

401(k) Providers on Edge as Warning on Crypto Faces Litigation

Austin R. Ramsey
Austin R. Ramsey

A lawsuit challenging the US Labor Department’s guidance on including cryptocurrency in 401(k) plans highlights the department’s warning that it will investigate retirement plan sponsors who offer such investments.

Guidance (CAR No. 2022-01) the Employee Benefits Security Administration issued in March instructed employers to use “extreme care” when considering digital asset investments and warned of a looming “investigative program” for crypto-invested plans. Even employers that let their workers choose digital assets could undergo heightened regulatory scrutiny, the guidance said.

That enforcement standard has the potential to leave businesses that offer 401(k) benefits scrambling to meet an evolving definition ...

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