Crypto Is Coming for Your Retirement Plan

The cryptocurrency exchange FTX recently collapsed in spectacular fashion. Yet a lawsuit linked to the exchange is currently attempting to force crypto into the retirement market.

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Crypto peddlers want access to the $6.4 trillion 401(k) market. (Anthony Kwan / Getty Images)


An investment firm tied to the collapsed crypto trading platform FTX is also backing a company whose court battle could help funnel Americans’ retirement nest eggs into digital currencies, a Lever review has found. The legal campaign coincides with a push by crypto-bankrolled lawmakers to try to clear the way for retirement savings to be invested in the crypto market.

At issue is the Labor Department’s March guidance warning retirement plan administrators to “exercise extreme care before they consider adding a cryptocurrency option to a 401(k) plan” because the investments are so volatile. The agency promised a deeper investigation into crypto, and warned administrators that they “should expect to be questioned” if they helped direct retiree assets into the currencies.

Though nonbinding, that federal guidance is now the target of a lawsuit brought by an investment company offering crypto to its 401(k) clients. The firm is also backed by an investor in FTX. The suit aims to force regulators to retract the guidance, arguing that the government is acting as an “armchair financial adviser” in issuing such warnings.

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