What You Need to Know
- Neal wants GAO to investigate the hazards to retirement savings posed by offering cryptocurrency in retirement plans.
- He asked GAO to determine the extent to which investment options for cryptocurrency are being offered by firms.
- After meeting with Fidelity, Labor's Ali Khawar said he thinks the firm understands the government's concerns.
House Ways and Means Committee Chairman Richard Neal, D-Mass., asked the Government Accountability Office on Wednesday to investigate the hazards to retirement savings posed by offering cryptocurrency in retirement plans.
“Recent announcements from major DC plan providers indicate that many employers who sponsor DC plans will have the option to allow their employees to invest in cryptocurrencies,” Neal told GAO Comptroller General Gene Dodaro in a letter.
“However, concerns have arisen about the risks to older Americans’ retirement security of using retirement accounts to invest in cryptocurrencies due to their volatility and limited oversight,” Neal said.
Neal noted the Department of Labor’s cautionary guidance issued earlier this year that defined contribution plan sponsors “should exercise extreme care before they consider adding a cryptocurrency investment option to their plan, given the risks and complications these assets pose to both participants and sponsors.”