The US Department of Labor (DOL) recently issued guidance for the first time on the investment of retirement plan assets in cryptocurrencies. Compliance Assistance Release No. 2022-01 cautions 401(k) plan fiduciaries to “exercise extreme care” before allowing participants to invest plan assets in cryptocurrencies because cryptocurrencies “present significant risks and challenges to participants’ retirement accounts, including significant risks of fraud, theft, and loss.” In this Intellectual Property & Technology Law Journal article, McDermott Partners Andrea S. Kramer and Brian J. Tiemann outline what retirement plan fiduciaries need to know about cryptocurrency investments in the current market.
When Are Cryptocurrencies Appropriate Investments for Retirement Plans and IRAs?
By Andrea Kramer and Brian Tiemann on June 7, 2022
Tags: 401(k), 403(b), bitcoin, CFTC, Commodity Futures Trading Commission, cryptocurrencies, digital assets, DOL, Employee Retirement Income Security Act of 1974, ERISA, Ether, Individual Retirement Accounts, Internal Revenue Code, Internal Revenue Service, IRAs, IRS, NFTs, non-fungible tokens, Retirement Plans, SEC, Securities and Exchange Commission, US Department of Labor
Andrea KramerAndrea (Andie) S. Kramer has a sophisticated and unique multi-disciplinary legal practice that covers all aspects of financial transaction, derivatives, cryptocurrency, and energy transactions. She focuses on taxation, regulation, contract design, documentation, and trading operations. Andie helps clients successfully resolve difficult legal situations, including federal and state regulatory matters, adversarial proceedings, and tax planning and compliance issues. She addresses interrelated business objectives, regulatory and legal requirements, and public policy. Read Andie Kramer's full bio.
Brian TiemannBrian J. Tiemann counsels public and private companies on a broad range of employee benefit matters, including matters related to pension plans, 401(k) plans and executive and incentive compensation. He advises plan fiduciaries with respect to their fiduciary duties, investment policies and alternative investments. He also advises multinational clients on global employee benefits matters, particularly with respect to global incentive compensation plans. Brian has extensive experience negotiating investment management agreements and service provider agreements. Read Brian Tiemann's full bio.
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