He said: “At this early stage in the history of cryptocurrencies … the US Department of Labor is seriously concerned about the decisions of the plans to expose participants to direct investments in cryptocurrencies or related products, such as NFTs, coins and crypto-assets.
The Department of Labor has warned that employers who add cryptocurrency investments to company 401k plans could breach their legal obligations.
However, financial services companies have begun to market these investments as retirement plan options with growing popularity.
Employers offering 401(k) plans have a legal obligation to select investments carefully and monitor them on an ongoing basis.
Over the past decade, however, there have been a number of lawsuits alleging workers lost money due to excessive costs and unwise fund choices.
On Thursday, the Department of Labor outlined the risks and challenges of investing in cryptocurrencies in a memo.
One of the problems is that digital currencies are speculative, volatile and difficult to manage.
It can also be difficult for investors to make an informed investment decision.
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He said, “The big question coming into the executive order was whether it was going to be balanced, whether it was going to talk about both the risks and the opportunities in crypto.
“It’s pretty close to the result we were all hoping for.”