Crypto Freefall Gives Retirement Plans New Reason to Avoid Risk

Upheaval in the cryptocurrency market puts teeth in a US Labor Department push to discourage retirement plans from adding digital assets to their 401(k) plan lineups.

Crypto markets lost more than $270 billion just weeks after the department’s Employee Benefits Security Administration issued strongly worded guidance (CAR No. 2022-01) all but banning retirement plans from offering crypto assets.

Even before the cryptocurrency price drops, plan sponsors who wanted to offer the assets were facing the threat of a Labor Department probe that would consume their attention and resources. The current market trend makes it tougher for plans to ...