Labor Department | Crypto

The three members of Congress said the volatility of digital assets and “lack of regulation and safeguards” could put Americans’ retirement savings at risk. Top Democrats on three House and Senate committees called on the US Labor Department to halt its plans to allow digital assets and “alternative assets” to be held in Americans' retirement plans.  In a Tuesday letter, Senator Bernie Sanders, Senator Elizabeth Warren and Representative Bobby Scott asked acting Labor Secretary Keith Sonderling to rescind the department’s proposal to allow private equity, digital assets, private credit, and other “alternative assets” to be included in 401(k) plans. Source: Senate Banking Committee Read more

According to Labor Secretary Chavez-DeRemer, this move returns investment decisions to fiduciaries instead of bureaucrats. The US Labor Department has officially rescinded guidance issued during the Biden administration that limited the inclusion of cryptocurrency in 401(k) retirement plans. On May 28, the Labor Department revoked a 2022 guidance that had urged fiduciaries to be “extremely cautious” when considering cryptocurrency for 401(k) retirement plans. The move could give asset managers more flexibility to include digital assets in retirement investment options. The government agency removed the guidance asserting that it represented a departure from the department’s “historically neutral, principled-based approach to fiduciary investment decisions.” Read more

The US Department of Labor (DOL) formally rescinded a 2022 compliance release that discouraged fiduciaries from offering crypto investment options in 401(k) retirement plans, according to a May 28 announcement. The decision withdraws “Compliance Assistance Release No. 2022-01,” which directed fiduciaries to exercise “extreme care” before including digital assets in retirement plan investment menus. Neutrality restored  […] The post US Labor Department dials back crypto warning for retirement plans appeared first on CryptoSlate.