July 6, 2022

“Crypto”-related innovation in financial services is expanding at a dizzying pace. Before 2009 when the first Bitcoin was “mined” into existence, cryptocurrencies did not exist. Now there are over 19,000 cryptocurrencies with a market capital of over $1.2 trillion.1 As much as 22% of the U.S. adult population owns Bitcoin.2 Bank core processing vendors are announcing relationships with Fintechs to add cryptocurrency functions to banks’ service offerings.

Many financial organizations tout the benefits of their ERISA 3(16) fiduciary services, and, frankly, many of these messages can sound irresistibly compelling. But buyer beware; not all 3(16) fiduciary services are created
equal. In today’s increasingly litigious environment, it is imperative for plan sponsors to be educated consumers of
3(16) fiduciary services.