Bloomberg: Trump Pushes for Cryptocurrency in Retirement Accounts, But Still Faces Welfare Lawsuit Risk

On June 3rd, as per Bloomberg, the potential litigation risks faced by employers who have a legal duty to oversee employee 401(k) investments might impede President Donald Trump's attempts to incorporate a greater amount of cryptocurrency into employee retirement accounts. The U.S. Department of Labor has withdrawn the guidance issued by the Biden administration which had cautioned corporate retirement plans against allocating digital assets. This is a part of a broader policy shift at the White House aimed at opening 401(k) accounts to alternative assets, including private equity, especially in light of companies increasing their Bitcoin investments with the support of Trump. Currently, cryptocurrency assets make up less than 1% of the $9 trillion 401(k) market, which has traditionally been almost exclusively focused on stocks and bonds. Note: "Benefit Litigation" refers to legal actions initiated by employees, retirees, or their representatives against employers, retirement plan fiduciaries, or related entities regarding employee benefit plans such as pensions, 401(k)s, and health insurance.