PLANSPONSOR - October/November 2021 - 15

Crypto currency in DC Plans
NEWSDASH readers recently shared
whether they thought defined contribution
(DC) plan participants should be
able to invest their retirement savings in
digital assets.
They were asked, " Do you think DC
plan participants should be allowed to
invest in cryptocurrency? "
There was a mix of sentiments among
readers who chose to share comments-
from some who stated a firm negative to
some who said participants should have
freedom to choose.
The vast majority (82%) said, no,
plan participants should not be allowed
to invest in cryptocurrency. The rest said
they should, with 4% opining, though,
that this should be only through selfdirected
brokerage accounts (SDBAs).
Nearly six in 10 responding readers
(59%) work in a plan sponsor role; 23%
are, or work for, recordkeepers/third-party
administrators (TPAs)/investment consultants;
and 18% are advisers/consultants.
TIDBITS
The Problem With Jargon
Match
Contribution
Gift or
donation
to charity
Athletic
competition or
dating service;
something to
Allocation
Amount
expected of
an item in
short supply
light a fire with
Election
The process
of choosing
political
candidates
Verbatim Responses
Responses reflect the opinions of individual
readers and not necessarily the
stance of Institutional Shareholder
Services (ISS) Inc. or its affiliates.
" 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 longterm
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. "
" This is not only the currency of
tomorrow but of today. "
" 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. "
And the 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's too volatile. Just because some
participants may want to invest in cryptocurrency
doesn't mean we should offer it in our
retirement plan menu. " -Rebecca Moore
When participants
are attempting
to make plan
elections and
encounter industry
jargon, if they
don't understand
the term they may
be less willing to
take action.
Deferral
The act
of putting
something
off until
later
Distribution
How companies
get goods to
consumers
Rollover
A trick
one teaches
the dog
Vehicle
A car
or truck
Source: Empower, " Less Jargon, More Clarity "
PLANSPONSOR.COM October - November 2021 15
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PLANSPONSOR - October/November 2021

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