Full disclosure: to keep my head from popping off, I largely ignore crypto news and information. But when the Department of Labor uses the term, I have no choice but to secure my noggin and dig in. Here goes:
The DOL released a compliance advisory on 401K investments and cryptocurrencies. Short version: do not include or advertise cryptocurrency as a good investment for employees. Specifically:
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. These investments present significant risks and challenges to participants’ retirement accounts, including significant risks of fraud, theft, and loss…
How great is that? You can blame the DOL for a lack of crypto investments when it’s actually not even on your radar!
Happy Friday.