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- Bitcoin 401(k) provider ForUsAll has sued the Department of Labor
- ForUsAll alleges that the department is actively pushing potential investors away from investing in Bitcoin
- The Bitcoin 401(k) launched last year as the first such plan in Bitcoin’s history
ForUsAll, the provider of the first Bitcoin 401(k), is suing the Department of Labor over a planned investigation into firms offering crypto retirement options. ForUsAll has decided to take the action over what it calls an “arbitrary and capricious attempt to restrict the use of cryptocurrency” plans by the Department of Labor, which it says is actively urging investors to shy away from cryptocurrency investments.
Department of Labor Accused of Warning Investors Off Bitcoin
ForUsAll made headlines in June last year when it announced that it had teamed up with Coinbase to offer exposure to 50 cryptocurrencies through a 401(k), with digital assets making up 5% of the overall fund.
This service hasn’t gone down well with everyone it seems however, as it accused the Department of Labor of taking a number of steps to push people away from partially investing their 401(k) in cryptocurrencies, including a new obligation to monitor investments, just for cryptocurrencies; focusing only on the risks and not the benefits of crypto investment; threatening to open investigations into firms that offer cryptocurrency 401(k) investments; and more.
Further, the complaint argues that citizens should be free to choose where they put their money and should not be pushed towards or away from a certain investment sector by a supposedly independent body.
Bitcoin 401(k) Party Got Bigger Last Month
ForUsAll was the only Bitcoin 401(k) provider for almost a year until Fidelity joined the party last month, bringing Bitcoin retirement investments to the 23,000 companies that use Fidelity, massively increasing the exposure and no doubt raising the hackles of the Department of Labor further.