The U.S. Department of Labor has proposed a regulatory change aimed at expanding investment options for 401(k) retirement plans. In practice, there is a chance that it will be easier to invest in cryptocurrencies in the USA.
Cryptocurrency retirement
The project defines digital assets as “a new form of investing that covers a wide range of assets that can be stored and transmitted digitally, including cryptocurrencies such as bitcoin and other tokens.”
The proposal, if implemented, could help invest trillions of dollars of capital of future retirees in cryptocurrencies.
Labor Secretary Lori Chavez-DeRemer said the “proposed regulations will demonstrate how plans can include products that better reflect the current investment landscape.”
This greater diversity will drive innovation and bring significant benefits to American workers, retirees and their families
– she added.
Diversification is essential today!
SEC Chairman Paul Atkins added on Monday that increasing U.S. investors’ access to long-term investments that leverage innovation and economic growth is a “key priority for effective retirement planning.”
Wall Street firms suggest cryptocurrency allocations of 1-4%. For example, Morgan Stanley in October informed its 16,000 financial advisors – who collectively manage $6.2 trillion in client assets – that they could recommend cryptocurrency investments to their clients. In the same month, the bank recommended that investors allocate to cryptocurrencies at a level of 2% to 4%.
BlackRock, the world’s largest asset manager, recommends a more modest allocation: between 1% and 2%. All in order to create a more diversified investment portfolio.
