401(k) provider ForUsAll sues US Labor Dept over anti-crypto compliance release

ForUsAll, a 401(k) retirement provider, filed suit against the United States Department of Labor (DOL) and Martin Walsh as Labor Secretary in U.S. District Court in Washington, D.C. on Thursday. The company is seeking the withdrawal of a DOL compliance assistance release issued in March, citing the Administrative Procedure Act, which safeguards against arbitrary official encroachment on private rights.

The DOL release warned that the department’s Employee Benefits Security Administration is expected to “conduct an investigative program” aimed at 401(k) plans that contain cryptocurrency. ForUsAll CEO Jeff Schulte told Cointelegraph:

“The government is suddenly trying to restrict the type of investments Americans can choose to make because they’ve decided today that they don’t like a certain asset class. […] They’re clearly trying to effect a ban and they don’t have the legal authority to do so.”

The DOL release has elicited a sharp response from several quarters. A group of 11 financial industry trade associations sent a letter to Acting Assistant Secretary Ali Khawar in April objecting to the “rulemaking nature” of the release without stating a position on the presence of cryptocurrency in retirement plans.

Later that month, ten investor, consumer, worker and retiree organizations sent a letter to Khawar in support of the release, saying it is consistent with the Employee Retirement Income Security Act of 1974 that created the 401(k) program and imposed strict duties on plan fiduciaries.

Related: Senator’s Financial Freedom Act would ensure Bitcoin can be in your 401(k)

Schulte said ForUsAll has about 150 companies that have signed up for 401(k) plans that include crypto, and ForUsAll intended to begin rolling out 401(k) plans that include crypto this summer.

“We have met with the Department of Labor last year,” Schulte said. “We have taken great pains to make sure that our program complies with all existing regulations and rules and we are confident in the design of our program.”

All Dutch and English crypto news!

How low can Ethereum price drop versus Bitcoin amid the DeFi contagion?

Ethereum's native token Ether (ETH) has declined by more than 35% against Bitcoin (BTC) since December 2021 with a potential to decline further in the...

6 Questions for Daniel Yan of Matrixport

We ask the buidlers in the blockchain and cryptocurrency sector for their thoughts on the industry… and throw in a few random zingers to keep...

Small-time investors achieve the 1 BTC dream as Bitcoin holds $20k range

Ever since early Bitcoin (BTC) investors woke up millionaires as the ecosystem gained tremendous popularity alongside the mainstreaming of the internet, investors across the globe...

Nifty News: Yuga Labs breaks silence, X2Y2 outpaces OpenSea and more…

Yuga Labs has finally broken its silence over the conspiracy theory that alleges the team embedded alt-right and Nazi memes/imagery into the artwork and branding...

Beste exchanges

Koop je crypto bij Bitvavo