QOTW: Cryptocurrency

Last week the Labor Department issued a “Compliance Assistance Release” regarding the inclusion of cryptocurrency in 401(k) plans – basically reminding plan fiduciaries that they should exercise “extreme caution” before including it as a direct investment option. This week we asked plan sponsors if this DOL release changed anything in terms of their consideration of cryptocurrency. Plan sponsors are overwhelmingly not considering, and will not consider, cryptocurrency a prudent investment option in a retirement plan.

Comments include:

• Any specialty funds like these would need to be accessed thru the SDA - brokerage window.  I don't believe they should be included in regular investment lineup.
• As long as cryptocurrency is unregulated, we would not consider this as a viable investment option
• Based on the DOL release we are assessing if any SDBA participant has crypto investments and plan to remove the abilities to do so in the future. Still under discovery phase.
• Due to our fiduciary responsibility, it is highly unlikely that crypto will ever have a place in our DC plan. The most appropriate way for participants to add exposure to crypto, to the extent that it is even available, would be through a Personal Choice Retirement Account.
• If allowed, limit it to a small % of total assets in individuals account.
• It is extremely unlikely that we would seriously consider the addition of cryptocurrency as an investment option.
• Not going to happen in our plan.
• We will continue to monitor this option for development.  If appropriate regulations are put in place, it may come to be a desired asset for inclusion in investment options.