ForUsAll, a San Francisco-based 401(k) supplier, has filed a lawsuit against the US Department of Labor (DOL). It has to do with the foundation’s recent decision to open an investigation into companies that offer clients the option to invest some of their pension plans in cryptocurrency.

Supplier 401 (k) File a complaint against the US Department of Labor (DOL) in an effort to overturn the regulator’s recent decision to investigate companies that provide cryptocurrency provisions as part of their retirement plans. The company described this decision as “arbitrary, capricious, and otherwise illegal.”

ForUsAll advertises itself as “the first 401(k) platform to provide access to cryptocurrencies.” Its other services include dealing with mutual funds and ESG at low fees. The company announced an agreement with a cryptocurrency exchange last year Queen Piece. This allows ForUsAll clients to invest up to 5% of their 401(k) contributions in Bitcoin, Ethereum and other cryptocurrencies.

This company is not the only case. Fidelity Investments, the fourth largest manager Last month he announced similar plans. However, his cryptocurrency retirement plans varied in percentage. Fidelity will allow investors to allocate up to 20% of their 401(k) retirement accounts to BTC.

Ministry of Labor warning

The Ministry of Labor issued Warnings for 401(k) sellers about their plans. In its March release, the foundation said cryptocurrencies are “speculative and volatile investments.” Moreover, it is burdened with problems related to storage, record keeping, evaluation and organization.

These considerations were sufficient to conduct an “investigation program targeting plans that offer participants investments in cryptocurrency” and “take appropriate measures to protect the interests of the participants in the plan.”

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ForUsAll Male The Wall Street Journal“About 150 of the 500 companies using their 401(k) service have already signed crypto options deals.” A third of customers the company has spoken to since the release of the DOL guidelines have chosen to wait before offering this option.

US Department of Labor