The executive order targets outdated rules that have long blocked retirement plans from investing in these higher-growth but higher-risk assets. But the underlying law governing retirement accounts, the Employee Retirement Income Security Act (ERISA), isn’t changing, The reports New York Times.
ERISA mandates fiduciaries, who are employers or plan administrators, to act solely in the best interests of employees, selecting prudent investments, states the NYT report.
This means that despite the new order, plan administrators will still need to carefully evaluate whether including volatile assets such as cryptocurrencies is appropriate for their participants.
