Monday, October 2, 2023
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EBSA 401(k) guidance: Keeping crypto out

good morning. Welcome to Protocol Fintech. This Monday: Bitcoin obstacles at 401 (k), anxiety about Coinbase and Grayscale combat plans.

Off the chain

The question is not whether we are in the crypto winter, but whether your down vest is enough to get you over it. Unless you’re Michael Sonnenshein from Grayscale I told my colleague Ben Pimentel said it was an open question. Galaxy Digital’s Mike Novogratz says his Luna tattoo is a reminder to avoid arrogance, but it’s more bearish, The crypto market You may have to wait until the fourth quarter for the Fed to ease.

— Owen Thomas (Email | twitter).

Cryptography is far from retirement

Given the plunge in digital asset prices, one would think that cryptocurrencies are the last thing people now want to bet on their retirement. The Ministry of Labor has clarified that opinion, Tell In March, providers plan to pay close attention before including cryptocurrencies in their retirement plans. However, Fidelity, a big player in the 401 (k) world, and For Us All, a startup about 10 years ago, have plummeted. ForUsAll actually sued the department over the guidance.

The Ministry of Labor did not chop up the words in the cryptographic warning. Cryptocurrencies are said to pose a “significant risk of fraud, theft and loss.” And that was before the UST meltdown!

  • The Employee Welfare Administration has elaborated on workers’ claims about cryptocurrencies: speculative and volatile investments hurt participants approaching retirement. Even experts have a hard time agreeing on how to evaluate them. The risk of hacking causes administrative problems.
  • In addition, authorities have pointed out that the regulatory environment is evolving. This means that trustees need to closely monitor state and federal rules to protect plan participants. (Ironically, perhaps because the Ministry of Labor is partially responsible for fostering that uncertainty!)
  • The agency has vowed to investigate plans to offer cryptocurrencies.

Fidelity and For Us All claim that the agency has stepped over in a warning of the investigation. Both are challenging the guidance.

  • ForUsAll has taken stronger steps to file a lawsuit alleging that the department violates the Administrative Procedure Act. He complained that EBSA imposes “extra care” standards on cryptocurrencies that differ from other asset classes.
  • Fidelity Dave Gray Prompted The department will revisit the guidance for a variety of reasons, including the confusion between Bitcoin and less widely traded cryptocurrencies. He wrote that the agency did not clearly define which investment the guidelines apply to and also opposed “extreme care” standards. ERISA, a law that regulates workplace retirement plans by the Ministry of Labor, has already required trustees to assess whether investment options are wise and does not allow the Ministry of Labor to make its own decisions. Gray wrote.
  • ForUsAll has implemented a guardrail for crypto investment in planning and design. Limit crypto to 5% of the portfolio and limit crypto allocation for ongoing contributions to 5%. So far, Fidelity has been working with MicroStrategy, a software company on the sidelines to invest in Bitcoin, to offer Bitcoin to employees in retired accounts. They can allocate up to 20% savings to Bitcoin.

Clarification of regulations can take some time. The new Lummis-Gillibrand crypto bill only indirectly supports crypto for severance pay accounts.

  • The Responsible Financial Innovation Act requires Comptrollers to investigate “retirement investments in digital assets” and submit a report by March 2023.
  • President Biden’s cryptographic presidential order is similarly ambiguous on this issue.
  • Senator Tommy Tuberville introduced the Financial Freedom Act in May. It explicitly allows the plan to provide crypto through voluntary investment options.

The discussion of crypto in retirement plans reflects a broader disagreement about asset classes.Ric Edelman, financial adviser and author of “The Truth About Crypto” Comparison In an interview with MarketWatch, he sent Bitcoin to Model T and accused the Ministry of Labor of “injustice paternalism.” But it may not matter if you are a Bitcoin maxi or a crypto skeptic. As Wendy von Wald, Trustee Product Manager of Travelers It pointed out“The trustee must act in the best interests of the plan participants.” Legal uncertainty until it becomes clear that providing cryptocurrency is in compliance with the bill. May be enough to prevent most retired worlds from following the cryptocurrency path to fiduciary and For UsAll.

— Rear Jitter (Email | twitter).

Message from the Star Development Foundation

Learn about the new first service launched on the Stellar network that bridges the gap between the physical and digital worlds. It will pave the way for blockchain as a tool to promote financial inclusion by creating liquidity to move cash to cryptocurrencies, and more people will benefit from the digital economy.

learn more

With money

About the protocol: CFPB Probing “Employer-led debt”, consumer debt incurred at work to pay for the necessary equipment and training. This inquiry is often made when companies are increasingly partnering with fintech companies to offer a variety of financial products to their employees.

Mastercard brings that network to NFTs. and Expansion In the area of ​​Web3, payment giants have partnered with Immutable X, Candy Digital, The Sandbox, Mintable, Spring, Nifty Gateway and MoonPay to allow consumers to buy NFTs using MasterCard.

Also about the protocol: Grayscale is ready for a potential legal dispute with the SEC over Bitcoin Spot ETF applications. CEO Michael Sonnenshein Told the protocol.. With the attention-grabbing new legal adoption, Grayscale prepares for the results of all types of applications.

Trading Stellar-MoneyGram can help you put your money into cryptocurrencies. Consumers without a bank account or credit card I can do it now Bring the fiat money to MoneyGram’s location and convert it to encryption. The reverse is also true.

Revolut makes free US dollar transfers to the UK for businesses. Business customers now receive Pay up to US $ 1 million over an automated payment institution network. This is a move that allows you to send money abroad without using SWIFT, but that network remains an option.

Anxiety at Coinbase

According to the currently deleted petition first published on, employees are asking Coinbase to remove the three top leaders for actions that “lead to suspicious results.” CEO Brian Armstrong said on Friday that the request was “really ridiculous at multiple levels.”

The petition, titled “Operation Revive COIN,” required that Chief Operating Officer Emilie Choi, Chief Product Officer Surojit Chatterjee, and Chief Human Resources Officer LJ Brock be dismissed from Coinbase. Employees listed eight plans that they said were implemented under the direction of these executives, including Coinbase’s struggling NFT market. Decision to cancel a new job. And, “despite the fact that it’s an unsustainable plan and contrary to the wisdom of the crypto industry,” a reversed push to hire thousands of roles.

Employees also insisted on “generally indifferent and sometimes disrespectful attitudes” from three executives, and despite hiring more employees, the company “higher quality or higher quality”. I wrote that I couldn’t put out “Products and Services”.

Read the full text on

— Sarah Roach (Email | twitter).


The Fintech South conference starts on Tuesday. 2 days event It will be held at the Georgia World Congress Center in Atlanta. Speakers include EY partner Jamila Abston, Global Payments President Cameron Bready, and Apple’s Cherie Fuzzell. (Its name Seems familiar.. )

The Generations 2022 conference will also start on Tuesday. 2 days meeting Held in Charlotte, North Carolina, it will feature speakers from Credit Karma, Clearinghouse, Oracle and more.

The Invest2022 conference will start on Thursday. 2 days meeting Held in Hilton Midtown, New York City, it will feature speakers from Fidelity, Citibank, JP Morgan and others.

Message from the Star Development Foundation

At Stellar, wallets and fintech allow users to easily convert digital assets to cash or cash to digital assets in thousands of participating locations in an ever-growing number of countries around the world. let’s start.

learn more

Thank you for reading — see you tomorrow!


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