On March 11, the U.S. Department of Labor (DOL) issued a notice on Thursday that it will investigate retirement plans that offer cryptocurrency investment options. The agency advocates that retirement managers use “a high degree of caution” when considering cryptocurrencies as a retirement investment option.
According to the DOL notice, the number of companies marketing cryptocurrency investments for 401(k) plans has increased in recent months. These defined contribution plans often offer participants a variety of investment options or menus. Some of these companies are now marketing cryptocurrencies as a menu option. Currently, the DOL is skeptical of cryptocurrency as a retirement investment due to its volatility, custody and recording issues, issues with reliable valuations, and an opaque regulatory environment.