ForUsAll, a San Francisco-based 401 (k) supplier, is suing the U.S. Department of Labor (DOL). The company’s recent decision to launch an investigation into companies offering clients the option to invest some of their retirement plans in cryptocurrencies.
Supplier 401 (k) Complained Against the U.S. Department of Labor (DOL) in an attempt to reverse the regulator’s recent decision to investigate as part of the pension plans of companies that provide cryptocurrency quotas. The company called the decision “arbitrary, capricious and otherwise illegal.”
ForUsAll advertises itself as “the first 401 (k) platform to provide access to cryptocurrencies”. Its other services include mutual funds and low-cost ESG. The company announced a deal with the cryptocurrency exchange last year Coinbase. This allows ForUsAll customers to invest up to 5% of their 401 (k) contributions in Bitcoin. Ethereum And other cryptocurrencies.
This company is not the only case. Fidelity Investments, fourth largest manager Last month, he announced similar plans. However, his cryptocurrency pension plans vary in percentage. Credibility will allow investors to allocate 20% of their 401 (k) pension accounts to BTC.
Issued by DOL Warnings 401 (k) Vendors about their plans. In a March release, the company described cryptocurrencies as “speculative and volatile investments”. Also, they are burdened with problems related to storage, record keeping, evaluation and regulation.
These considerations were sufficient to “conduct an investigation project aimed at projects that provide cryptocurrency investments to participants” and to “take appropriate action to protect the interests of project participants.”
Everyone has been told The Wall Street Journal“About 150 of the 500 companies that use its 401 (k) service have already signed cryptocurrency option agreements.” One-third of the customers the company has spoken to since providing DOL guidelines have chosen to wait before being offered this option.
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