On March 11, the US Department of Labor warned employers sponsoring 401(k) retirement plans to “be extremely careful” when dealing with cryptocurrencies and other digital assets, even threatening to pay extra legal attention to retirement plans with significant crypto investments. .

The rationale is familiar to every crypto investor: Aside from the risk of fraud, digital assets are prone to volatility and thus can pose risks to US employees’ retirement savings. On the other hand, we see established players in the pension market taking steps towards crypto. First, retirement investment platform ForUsAll decided last year to implement crypto as an investment option for 401(k) fixed retirement accounts in partnership with Coinbase (NASDAQ:). Is this the start of a bigger trend?

Why even bother?

What the Law Says: 401(k)s, the ERISA and IRAs

“You can (if available from your employer) use a self-directed 401(k) to invest in alternative investments such as cryptocurrencies. A simple Google search (NASDAQ:) turns up at least one alternative to ForUsAll: BitWage. Many companies are also working on ETFs (such as Vanguard and SkyBridge Capital), although the Securities and Exchange Commission has not yet approved them. There are futures investment options approved by the Commodity Futures Trading Commission.” “You can invest in a long list of publicly traded companies that own crypto, such as MicroStrategy, Tesla (NASDAQ:), Coinbase, Block, PayPal (NASDAQ: ), Marathon Digital Holdings and Nvidia (NASDAQ:). I did this. Of course these companies have different business objectives, so you have to be ‘on board’ with whatever those objectives are.” I invested in both). This is easy, and they are like unit trusts or money market funds – you buy a ‘unit’ of a trust, which is fully liquid, rather than a fractional interest in a particular cryptocurrency.

From 2% to 5%

What’s next?

Read more on Coin Telegraph

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This post Could digital assets become part of Americans’ retirement plans? By CoinTelegraph

was original published at “https://www.investing.com/news/cryptocurrency-news/old-but-gold-can-digital-assets-become-part-of-americans-retirement-plans-2787904”