A 401(k) plan administrator has sued the US Labor Department over its bitcoin instructions. “The goal of this case is to protect American investors’ freedom to choose how to invest their money in their own retirement plans.”
The US Labor Department has been Accused of its crypto guidance
The US Agency of Labor (DOL) and Secretary of Labor Martin J. Walsh has been sued over Compliance Assistance Release No. 2022-01, which was issued by the department. On March 10, the advice, titled “401(k) Plan Investments in ‘Cryptocurrencies,'” was released.
According to the lawsuit, the Labor Department went beyond its statutory authority by threatening “an investigative campaign” against plan sponsors that supply digital assets.
The following is taken from the court document:
The goal of this action is to protect American investors’ freedom to choose how to invest their money in their own retirement funds.
Forusall Inc., a company that offers administrative and other services to retirement programs, is the plaintiff. According to the complaint, the corporation claims to be “the first to declare that it will make cryptocurrencies available to 401(k) plan members through a self-directed window.”
Some politicians, notably U.S. Senator Elizabeth Warren, are concerned about the financial services firm’s move to include bitcoin in 401(k) retirement accounts (D-MA). She then wrote a letter to Fidelity Investments CEO Abigail Johnson, raising concerns about the company’s proposal to enable bitcoin investments in 401(k) plans.
On the other side, several senators are concerned about the Labor Department’s proposal to prohibit Americans from investing in crypto assets for retirement purposes. Senator Tommy Tuberville (R-AL) presented the Financial Freedom Act in response to the Department of Labor’s crypto guidelines. The measure is “legislation prohibiting the United States Department of Labor (DOL) from releasing a regulation or advisory that limits the types of assets that self-directed 401(k) account investors can pick through a brokerage window.
Also Read: Environmental Impacts of Cryptocurrency: Stronger Monitoring is Needed by US Lawmakers
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