SURVEY SAYS: Does Cryptocurrency Have a Place in DC Plans?

Last week, I asked NewsDash readers, “Do you think DC plan participants should be allowed to invest in cryptocurrency?”

Nearly six in 10 responding readers (59%) work in a plan sponsor role, 23% are/work for recordkeepers/TPAs/investment consultants, and 18% are advisers/consultants.

The vast majority (82%) said defined contribution (DC) plan participants should not be allowed to invest in cryptocurrency. Still, the rest said they should, with 4% saying its should only be through self-directed brokerage accounts (SDBAs).

There was a mix of sentiment among readers who chose to share comments—from a firm negative to some who say participants should have freedom to choose. In between, there were responding readers who expressed belief that now is not the time, but cryptocurrency might have a place in DC plans in the future. Editor’s Choice goes to the reader who said: “I don’t see how a fiduciary would see cryptocurrency as a prudent investment choice for a retirement plan. At this point it is too volatile. Just because participants want to invest in it, doesn’t mean we should offer it in our plan.”

A big thanks to everyone who participated in the survey!

Verbatim

You need a “Hell, no!” response to the question. This idea is, as they say, “cray cray.”

Too volatile, too risky and too much unknown about it right now to include in DC plans. Lawsuit waiting to happen.

Although the elitist mindset part of me says ordinary people don’t understand the risks, in America people should be allowed to make their own financial decisions and long term perhaps, crypto might be the best returning investment option for the long-term investor. Who knows?!

Only two words can describe this investment fad, “Tulip Mania.”

If individuals are interested in investing in highly volatile options, they are free to do that outside retirement plans. I’m not supportive of allowing or encouraging speculation with retirement assets.

I feel like there is so much unknown yet about it. If it is not used in day-to-day life, I’m not sure we should be using it towards our retirement.

This is not only the currency of tomorrow, but of today.

DC plans are for retirement savings. Those who want to invest in crypto should do so outside their retirement plan.

I don’t see how a fiduciary would see cryptocurrency as a prudent investment choice for a retirement plan. At this point it is too volatile. Just because participants want to invest in it, doesn’t mean we should offer it in our plan.

Too risky and complex for the average employee to understand. Too soon to tell if it’s truly a retirement plan investment.

Cryptocurrencies combine elaborate Ponzi schemes with all the traceability and clarity of a low grade snuff film. What’s not to like?

Cryptocurrency is way too speculative to have any place in a DC plan.

It could be an enticing offer, especially for younger investors.

I feel like participants aren’t educated enough on cryptocurrency, currently. Maybe in the future.