Digital assets in retirement accounts covered by the Employee Retirement Income Security Act of 1974, as amended ("ERISA") and individual retirement accounts ("IRAs") established under Section 408(a) of the Internal Revenue Code of 1986, as amended ("Code") pose compliance challenges. However, given the recent change in Presidential Administration and its views about investing in digital assets such as cryptocurrency and non-fungible tokens, legal counsel and compliance professionals should expect increased interest in and openness to using ERISA-covered accounts and IRAs to invest in digital assets and to otherwise take advantage of related technologies.
In this The Investment Lawyer article, "Digital Assets in ERISA Plans and IRAs: It's a Brave New World," Groom principal David Kaleda outlines compliance challenges for financial services firms, plan fiduciaries, and advisers in incorporating digital assets and blockchain technologies into ERISA plans and IRA.
To read the article, click here.