Labor Department warning opens divide on crypto in 401(k) plans

A 401(k) provider sues the Labor Department, saying it has no legal authority or precedent. The Labor Department issued a warning in March about adding cryptocurrencies to retirement plans. A month later, Fidelity Investments said it would offer the option to invest part of 401(K) plans in bitcoin. ForUsAll says the department's warning violated the law that governs how federal agencies develop and issue rules. The California-based company said the department issued the guidance suddenly and without public comment. It says it's a violation of the law governing how the federal government develops and issues new rules and doesn't have the power to pick winners and losers, let alone the legal authority to arbitrarily restrict entire asset classes’s assets, it says. Source