DOL Provides Regulatory Clarity of 401k Plan Offering Bitcoin

The U.S. DOL concludes its 2-year review of DAIM’s 401k Bitcoin plan, stating its model without validating or restricting Bitcoin allocations.

The DAIM 401k plan, which allows employees to invest up to 10% of their portfolio in Bitcoin, has successfully completed the extensive investigation by the U.S. Department of Labor (DOL).

The DOL did not specifically state that spot Bitcoin in 401(k) plans was prohibited, but also did not impose any restrictions on DAIM’s current structure or methodology. Audits and staff interviews were conducted as part of the roughly two-year-long evaluation process to verify the details of DAIM’s offering.

The DOL’s meticulous attention to comprehending Bitcoin’s developing position as a portfolio expander was greatly welcomed by Bryan Courchesne, the founder of DAIM. According to him, investors would feel more at ease investing in Bitcoin if digital assets were properly regulated.

On 401(k) plans with exposure to cryptocurrency, the DOL does offer general recommendations. In order to mitigate risk, DAIM keeps its offering limited to a 10% allocation to Bitcoin. It also gives employees access to instructional materials on Bitcoin investment and allows them to create diverse portfolios spanning various asset classes.

Related Posts