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DOL Rescinded Cautionary Guidelines for Cryptos in 401k

DOL says that this makes it neutral on the issue. So, it's up to plan fiduciaries whether to include cryptos (or not) in 401k.
https://www.dol.gov/agencies/ebsa/employers-and-advisers/plan-administration-and-compliance/compliance-assistance-releases/2025-01

Comments

  • @yogibearbull Maybe they will reorganize the TSP-G fund into the TSP-Cryto fund. During his last term Trump said something about getting rid of or changing the G-fund.
  • Anna said:

    @yogibearbull Maybe they will reorganize the TSP-G fund into the TSP-Cryto fund. During his last term Trump said something about getting rid of or changing the G-fund.

    That'd be one way to goose a US crypto stockpile.....or (gods forbid) his crime family's new cryptocurrency scheme.
  • "The Trump administration on Wednesday rolled back a guideline that urged companies
    to exercise 'extreme care' in offering cryptocurrency in their 401(k) plans.
    It is a win for Fidelity Investments, which is a major player in crypto brokerage services
    and products and had objected to the Biden-era rule."


    https://www.msn.com/en-us/money/savingandinvesting/trump-drops-extreme-care-guideline-for-crypto-in-401ks-fidelity-notches-a-win/ar-AA1FEQrU

  • being neutral crypto does not make one immune...

    "...for a problem in the crypto industry to actually have ripple effects, it has to get big and interconnected with the rest of the financial system. Stablecoins are the mechanism for doing that. Even if they’re not the trigger for a future crisis. They are both a transmission belt of problems and a prior factor that’s likely to make that crisis a bigger deal.
    ... stablecoins are not always so stable. The stablecoin USDC was initially pegged to the dollar, but the company that issued it held its reserves at Silicon Valley Bank. When the bank collapsed in 2023, the value of one USDC share, which was supposed to stay at a dollar, fell below 87 cents.
    ... right now the way people look at stablecoins is that you either use them for illegal payments or you use them as an on \ off ramp for crypto speculation. You don’t treat them like your money. But what this bill does is it’s sort of broadcasting to Americans. This is a Safe money substitute. Once it becomes treated as money by people, then even the smallest deep pegging can be enough to cause people to freak out..."

    https://slate.com/podcasts/what-next-tbd/2025/05/crypto-wants-the-appearance-of-regulation-without-the-red-tape
  • edited 10:33AM
    OK, how about some FDIC type "full-faith-and-credit" coverage of memecoins? The governement of "we the people?" should be willing to put their wealth behind the possible government approved cons.
  • "We the people" are those of us who still pay significant taxes. Those with the real wealth are largely immune from that burden.
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