Trump administration pushes to ease 401(k) rules… hopes rise for broader inclusion of crypto assets
Summary
- The U.S. Department of Labor said it released a draft rule that would make it easier to allow 401(k) retirement plans to include alternative assets, including virtual assets.
- The new rule focuses on strengthening legal protections for companies to reduce class-action litigation risk, and is expected to enable inclusion of a broad range of asset classes such as virtual assets, private credit, private equity funds and real estate.
- Fiduciaries must review investment suitability based on performance, fees, liquidity and valuation criteria, and expectations are rising that participation could expand among companies that have been reluctant to introduce alternative assets due to legal-risk concerns.
Forecast Trend Report by Period
The United States is moving to ease regulations on alternative-asset investing within retirement plans.
According to a draft rule released on the 30th (local time) by the U.S. Department of Labor (DOL), the centerpiece is to make it easier for 401(k) retirement plans to allow the inclusion of alternative assets, including virtual assets (cryptocurrencies).
The new rule focuses on strengthening legal protections for companies to reduce class-action litigation risk, and is expected to open the door to a wider range of asset classes such as virtual assets, private credit, private equity funds, and real estate.
However, fiduciaries must assess investment suitability based on criteria including performance, fees, liquidity and valuation.
Expectations are growing that participation could broaden among companies that have so far been reluctant to adopt alternative assets due to legal-risk concerns.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
