In the movie Casino, Robert DeNiro as Sam Rothstein wanted to take on the Nevada Gaming Board after they denied his request for his license. Andy Stone, a Teamster controlled by the Mafia and played by Alan King told him it was a bad idea: \u201cThe old man said, \u2018Maybe your friend should give in.\u2019 And when the old man says \u2018maybe\u2019, that\u2019s like a papal bull. Not only should you quit, you should run!\u201d<\/p>\n
I\u2019m telling you that if you have a 401(k) plan, don\u2019t allow crypto investing, just because the Department of Labor (DOL) is saying you should be cautious and are looking at plans that offer it.<\/p>\n
The DOL has published compliance assistance for 401(k) plan fiduciaries that are considering plan investments in cryptocurrencies, and it sounds like a warning.<\/p>\n
The department\u2019s Employee Benefits Security Administration (EBSA), published\u00a0Compliance Assistance Release No. 2022-01\u00a0 cautioning plan fiduciaries to exercise extreme care before they consider adding a cryptocurrency option to a 401(k) plan\u2019s investment menu for plan participants.<\/p>\n
The guidance states that the DOL has \u201cserious concerns about the prudence of a fiduciary\u2019s decision to expose a 401(k) plan\u2019s participants to direct investments in cryptocurrencies\u201d or other products whose value is tied to cryptocurrencies.<\/p>\n
EBSA says it expects to conduct an investigative program aimed at plans that offer participant investments in cryptocurrencies and related products, and to take appropriate action to protect the interests of plan participants and beneficiaries with respect to these investments. What does this mean? Until crypto is regulated and DOL offers guidance that it\u2019s OK, don\u2019t do it.<\/p>\n
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