The fiduciary of the retirement plan asserts that a notice regarding an examination of 401(k) plans that contain cryptocurrencies violates private rights
ForUsAll, a 401(k) retirement provider, filed suit against the United States Department of Labor (DOL) and Martin Walsh as Labor secretary in U.S. District Court in Washington, D.C. on Thursday.
The DOL's Employee Benefits Security Administration is anticipated to "launch an investigation" into 401(k) plans including cryptocurrencies, according to a press release.
Jeff Schulte, CEO of ForUsAll, said in a statement:
The government is suddenly trying to restrict the type of investments Americans can choose to make because they’ve decided today that they don’t like a certain asset class. […] They’re clearly trying to effect a ban and they don’t have the legal authority to do so.
The DOL's announcement has drawn strong reactions from a variety of parties. Eleven financial sector trade organisations submitted a letter to Acting Assistant Secretary Ali Khawar in April objecting to the "rulemaking aspect" of the publication without expressing a stance on the participation of cryptocurrencies in retirement plans.
Ten investor, consumer, worker, and retiree groups addressed a letter to Khawar later that month in favour of the release, stating that it is compatible with the Employee Retirement Income Security Act of 1974, which established the 401(k) programme and put strong requirements on plan fiduciaries.
Schulte said that around 150 employers had signed up for 401(k) plans that contain cryptocurrency, and that ForUsAll planned to roll out such programmes this summer.
We have met with the Department of Labor last year.We have taken great pains to make sure that our program complies with all existing regulations and rules, and we are confident in the design of our program.