New DOL Guidance for 401(k) Plan Sponsors and Fiduciaries: Cryptocurrency and Other Digital Asset Investments

Strafford

This CLE webinar will provide ERISA counsel an in-depth analysis of new Department of Labor (DOL) guidance and warning for retirement plans allowing cryptocurrency investment options and the rules, fiduciary issues, and transaction risks associated with such investments. The panel will discuss the increase in cryptocurrency investment options for retirement plans, ERISA compliance and rules for plan investments, exposure to fiduciaries, transaction and security risks, and best practices for ERISA counsel, plan sponsors, and fiduciaries.

Description

Cryptocurrency continues to be a widely used form of currency worldwide, attracting investors to various companies holding virtual assets. Retirement plan fiduciaries, 401(k) plan participants, private investors, and their counsel must consider the risks and required processes of plan investments in cryptocurrency.

On Mar. 9, 2022, the Biden administration issued an executive order focused on ensuring the responsible development of digital assets with the DOL publishing guidance on using cryptocurrencies as a 401(k) plan investment. The DOL guidance advises plan fiduciaries on all digital assets, including Ethereum, tokens, and other derivations with stark warnings on (1) fiduciary duty of prudence and personal liability; (2) security risks; (3) recordkeeping and custody; (4) valuation challenges; and (5) liquidity and diversification concerns.

Fiduciaries must navigate these issues, uphold the required standard of care, and take prudent steps to protect participant accounts and plan assets.

Listen as our panel discusses critical ERISA compliance issues for plan investments in cryptocurrency and other digital assets, exposure to fiduciaries, transaction and security risks, and best practices for ERISA counsel, plan sponsors, and fiduciaries.

Outline

1. Recent DOL guidance
2. Navigating challenges for cryptocurrency investments
   • Fiduciary obligations and exposure
   • Transaction and security risks
   • Recordkeeping and custody
   • Liquidity and diversification
   • Valuation
   • Government regulation
3. Best practices for ERISA counsel, fund managers, and advisers

More Information, How to Register