In a tweet shared by Watcher.guru, the US Department of Labor shared its concerns about cryptocurrencies, stating that crypto participants have significant risks and challenges to their retirement accounts, including significant risks of fraud, theft and loss.
JUST IN: The US Labor Department says #Bitcoin& crypto poses “significant risks and challenges to participants retirement accounts, including significant risks of fraud, theft and loss.”
— Watcher.Guru (@WatcherGuru) March 11, 2022
The employment agency also issued a warning stating that employers who add cryptocurrency investments to companies’ 401(k) plans can easily meet their legal obligations to workers who are plan participants.
On this matter, Ali Khawwar, deputy secretary of the Employee Benefits Security Administration, stated:
“Cryptocurrency “At this early stage in the history of currencies, we have serious concerns regarding the decisions of the U.S. Department of Labor regarding plans to expose participants to direct investments in cryptocurrencies or related products such as NFTs, coins and crypto assets.”
As officials imply, employers offering a 401(k) plan have a duty of trust based on the investments they make. In other words, these employers will be held accountable for their plans as they will act on behalf of the investments they allow.
The Ministry of Labor referred to the potential risks of cryptocurrencies, stating that “cryptocurrencies are speculative, volatile and difficult to value assets and it is very difficult for investors to make an informed investment decision.”
Cryptocurrency investors and communities, on the other hand, had long discussions after this announcement that there could be a decline in the markets and a purchase could be made in these falls.