U.S. pension plan provider sues the Department of Labor over criticism of bitcoin purchases

401(k) retirement savings account provider ForUsAll has filed a lawsuit against the U.S. Department of Labor (DOL) and its headMartin Walsh. The firm intends to seek the revocation of the order to comply with the requirements of the department regarding investments in cryptocurrencies, writes Decrypt.

The lawsuit includes the issued correspondingDOL guidance dated 10 March. ForUsAll cites a violation of the Administrative Procedures Act, which protects against arbitrary official encroachment on private rights.

The document says the agency will “conduct an investigation” into 401(k) programs containing cryptocurrencies.

"The government is suddenly trying to limit the type of investment [...] due to the fact that it doesn't like a certain asset class.[...] they are clearly trying to impose a ban, they have no legal authority to do so,"ForUsAll CEO Jeff Schulte told Cointelegraph.

The company has about 150 employers who have signed up for 401(k) plans that include digital assets, he said. ForUsAll expected to launch this product in the summer.

"We've put a lot of effort into making sure our program complies with all existing rules and regulations"Schulte explained.

In April, 11 financial trade associationsindustry sent acting. Assistant Minister of Labor Ali Khawar, a letter objecting to the "rule-making nature" of the said instruction. It did not contain the position of the signatories regarding the presence of cryptocurrency in pension plans.

Later, ten organizations sent the officialletter in support of the order. They stressed that the document is in line with the Employee Retirement Act of 1974, which imposes strict obligations on 401(k) retirement account trustees.

Recall that in April Fidelity Investmentsannounced a service to provide customers with the opportunity to accumulate bitcoins in 401(k) retirement savings accounts. Later it became known that the plans of the company worried the US Department of Labor.

In May, Republican Senator Tommy Tuberville introduced a bill allowing citizens to accumulate cryptocurrency on 401(k).

In the same month, his colleague Cynthia Lummis revealed the details of a bill to regulate cryptocurrencies in the US. According to her, the document will allow the integration of the digital asset class into 401 (k).