More options may soon be coming to the menu of investments you can choose in your 401(k) plan. And depending on who you ask, that may not be a good thing.
Last month, the Labor Department rescinded Biden-era guidance that cautioned employers to take “extreme care” before making digital assets, such as cryptocurrencies, available in company plans.
In and of itself, the crypto rollback is “not necessarily controversial,” Philip Chao, a certified financial planner and retirement plan investment consultant, recently told CNBC. “In reality, it’s saying we should treat crypto like any other asset.”
But it may be a signal to companies that they can begin offering crypto in workplace plans without consequence, he said.
Similarly, President Donald Trump is reportedly considering an executive order that would direct federal agencies to explore allowing private equity investments — funds that invest in non-publicly traded businesses — into plans as well.
