Your 401(k) Is Sagging. Bitcoin Won’t Fix It.

Janet Yellen

isn’t a HODLer. You probably shouldn’t be one either.

The Treasury Secretary said last week that it would be reasonable for Congress to regulate whether cryptocurrency belongs in retirement accounts. At the moment, digital assets fall into a legal gray area when it comes to pensions.

Back in March the Labor Department, which regulates Americans’ retirement savings, tried to set some boundaries without introducing new rules. It reminded retirement plan administrators of their fiduciary duty, expressing “serious concerns about the prudence” of putting cryptocurrency into a retirement plan. In the context of pensions, that wording carries special meaning: Someone who breaches that duty can be held personally liable for losses suffered by retirement savers.

The warning wasn’t chilling enough for Fidelity Investments, which administers retirement plans for around 23,000 companies. It said in April that it would allow plans to offer Bitcoin in the future. This month much smaller provider ForUsAll, which announced a crypto 401(k) last year, upped the ante by suing the Labor Department over the issue. After Labor…


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