Crypto in 401(k)s Poses Oversight Challenges Due to Lack of Data

The Department of Labor lacks the data necessary to oversee the small but potentially growing prevalence of cryptocurrency holdings in tax-advantaged retirement accounts like 401(k)s, according to a forthcoming report by the Government Accountability Office.

DOL’s Employee Benefits Security Administration doesn’t collect “comprehensive data” needed to determine whether plan holders are including crypto in their retirement savings, according to a draft copy of the report exclusively obtained by Bloomberg Tax. This blind spot hinders “DOL’s ability to isolate investments in crypto assets,” which the agency has warned against including in workplace-sponsored retirement plans due to their volatility, the report said. ...