Washington, D.C. – Better Markets and several other prominent public interest organizations sent a letter to the U.S. Department of Labor’s Employee Benefits Security Administration supporting its recent Compliance Assistance Release, which cautions plan fiduciaries to “exercise extreme care” before adding cryptocurrency investment options to 401 (k) plans. The letter, led by the Consumer Federation of America, notes that special caution is warranted because cryptocurrencies involve extreme price volatility; a heightened risk of fraud; and the lack of any consistent, reliable, and widely accepted standards for valuing cryptocurrencies.
“Given these concerns, and the many uncertainties that currently pervade digital asset markets, we think it would be particularly challenging for plan fiduciaries to satisfy their prudence obligations when exposing plan participants to these assets,” said the signatories to the letter. “We all agree that it is entirely appropriate at this stage in the market’s evolution that the Department caution plan fiduciaries to exercise extreme care when considering exposing plan participants to cryptocurrencies.”
In addition to Better Markets, a dozen public interest, labor, and economic policy organizations signed the letter.
You can find the letter here and below.
Better Markets is a non-profit, non-partisan, and independent organization founded in the wake of the 2008 financial crisis to promote the public interest in the financial markets, support the financial reform of Wall Street and make our financial system work for all Americans again. Better Markets works with allies – including many in finance – to promote pro-market, pro-business and pro-growth policies that help build a stronger, safer financial system that protects and promotes Americans’ jobs, savings, retirements and more. To learn more, visit www.bettermarkets.com.