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Edited by 977Iti at 22-12-2023 10:26 AM
Is cryptocurrency suitable for retirement savings? This is what the U.S. Department of Labor says.
A federal judge in the United States has dismissed ForUsAll's lawsuit against the Department of Labor (DOL). This action upholds the agency's cautious stance that cryptocurrency may not be suitable for retirement savings.
In June of last year, ForUsAll sued the U.S. Department of Labor, claiming that its efforts to restrict cryptocurrency in retirement accounts were arbitrary and capricious.
In March of this year, the Department of Labor issued guidance for 401(k) plans considering cryptocurrency investments and warned that investigations might be conducted into those offering such options.
Following the announcement, ForUsAll claimed that approximately one-third of plan participants decided not to proceed out of concerns about enforcement actions.
ForUsAll requested the court to rule that the department's statement was illegal and have it withdrawn and overturned.
However, U.S. District Judge Christopher Cooper stated in a memorandum on Tuesday that even if the guidance were withdrawn, it would not alter the Department of Labor's view on cryptocurrency-related risks or its intent to review such products.
The judge mentioned that ForUsAll lacked the legal standing to continue the lawsuit due to the unproven remedy.
Cooper stated, Without clear evidence to the contrary, it is hard to understand how the relief would restore ForUsAll's lost business opportunities because it remains doubtful whether plan sponsors will ignore these ineradicable risks and work with ForUsAll if the relief itself is no longer in effect.
He added that retirement plans were unlikely to easily re-engage with ForUsAll because they were still bound by fiduciary responsibilities, and these responsibilities could be rigorously enforced by a department that remains skeptical of cryptocurrency.
ForUsAll began offering alternative investment choices in 401(k) plans in 2021, using Coinbase Institutional for digital asset custody and trading.
The company manages $1.5 billion in assets and provides services for over 500 plans to more than 80,000 retirement savers, including clients such as Solana, TaxBit, and Uniswap. |
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Post time 2-11-2023 12:49:13