There's a blocker in the US tax code on the spot $BTC and $ETH funds, and none of this year's crypto rulemaking goes near it. A 403(b) custodial account qualifies only if everything in it is stock of a regulated investment company under IRC 851(a). An ETF that's itself a RIC goes in fine... the spot bitcoin and ether products are grantor trusts, though, so on the rule's wording they can't sit in one at all.
That's the retirement plan for public school districts, universities, hospitals and non-profits (church plans are the carve-out). The SEC custody work, the CFTC notice, the DOL fiduciary proposal and CLARITY all leave it standing. Changing it takes Congress. I've long thought only a statute brings sidelined institutional money in for good, and I think this one likely keeps a whole group of buyers out for a while.
I'll keep that group in mind the next time a headline says retirement money is on its way into Bitcoin.
#Bitcoin #Ethereum #ETF #Crypto #Regulation
That's the retirement plan for public school districts, universities, hospitals and non-profits (church plans are the carve-out). The SEC custody work, the CFTC notice, the DOL fiduciary proposal and CLARITY all leave it standing. Changing it takes Congress. I've long thought only a statute brings sidelined institutional money in for good, and I think this one likely keeps a whole group of buyers out for a while.
I'll keep that group in mind the next time a headline says retirement money is on its way into Bitcoin.
#Bitcoin #Ethereum #ETF #Crypto #Regulation