Published: June 2022

DOL’s plan to require excessive care by retirement plan fiduciaries when considering offering cryptocurrency as a 401(k) investment option is prudent

Consumer Action was one of a dozen advocacy organizations representing consumers, workers and retirees signed on to a letter to the U.S. Department of Labor (DOL) expressing support for the agency’s plan to require excessive care by retirement plan fiduciaries when considering offering cryptocurrency as a 401(k) investment option.

Consumer Action and a dozen other advocacy organizations representing consumers, workers and retirees signed on to a letter to the U.S. Department of Labor (DOJ) expressing support for the agency’s Compliance Assistance Release cautioning those who select investment options for employee retirement plans to exercise excessive care when considering including cryptocurrency in a 401(k) plan’s offerings. Cryptocurrencies can exhibit extreme price volatility; can be extraordinarily difficult to evaluate; are at a heightened risk of fraud, theft and loss; and may not be subject to existing regulatory frameworks. Given these risks, it is appropriate at this stage in the market's evolution—and entirely consistent with the Employee Retirement Income Security Act of 1974 (ERISA)—that the DOL caution plan fiduciaries to be extremely careful when considering exposing planparticipants to cryptocurrency assets.

Lead Organization

Consumer Federation of America

More Information

Read the letter here.

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