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The provider of accumulative retirement accounts 401(k) ForUsAll filed a lawsuit against the US Department of Labor (DOL) and its head Martin Walsh. The firm intends to obtain a revocation of the order on compliance with the requirements of the department regarding investments in cryptocurrencies, writes Decrypt.
The lawsuit includes a corresponding DOL directive issued on March 10. ForUsAll cites a violation of the Administrative Procedures Act, which protects against arbitrary official encroachment on private rights.
The document states that the agency will “conduct an investigation” aimed at 401(k) programs containing cryptocurrency.
“The government is suddenly trying to limit the type of investment. […] because he doesn’t like a certain asset class. […] They’re clearly trying to impose a ban, they don’t have the legal authority to do that.” ForUsAll CEO Jeff Schulte told Cointelegraph.
The company has about 150 employers who have signed up for 401(k) plans that include digital assets, he said. ForUsAll expected to launch this product in the summer.
“We have made great efforts to make sure that our program complies with all existing norms and rules”Schulte explained.
In April, 11 financial industry trade associations sent a letter to Acting Assistant Labour Minister Ali Hawar objecting to the “rule-making nature” of the directive. It did not contain the position of the signatories regarding the presence of cryptocurrency in pension plans.
Ten organizations later sent a letter to the official in support of the directive. They stressed that the document complies with the Workers’ Pensions Act 1974, which imposes strict duties on trustees of 401(k) retirement accounts.
Recall that in April, Fidelity Investments announced a service to provide customers with the opportunity to accumulate bitcoins in accumulative pension accounts 401 (k). Later it became known that the company’s plans worried the US Department of Labor.
In May, Republican Senator Tommy Tuberville introduced a bill allowing citizens to accumulate cryptocurrency at 401(k).
In the same month, his colleague Cynthia Lammis revealed the details of a bill to regulate cryptocurrencies in the United States. According to her, the document will allow the integration of a digital asset class into a 401(k).
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