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A new report from the U.S. Government Accountability Office (GAO) sheds light on the limited federal oversight of crypto assets within 401(k) plans, raising concerns that workers may be left to manage these volatile investments on their own.

According to the GAO, while crypto assets make up a small portion of the 401(k) market, there is minimal data from the Department of Labor (DOL) on their inclusion in retirement plans. The report notes that crypto assets exhibit "uniquely high volatility," and its analysis reveals that there is no standardized method for projecting their future returns.

The GAO also found that the DOL has not required fiduciaries to monitor and select investment options outside a plan’s core offerings, such as those available through self-directed brokerage windows. This lack of oversight could place the burden on participants to manage crypto investments independently, the report states.

The option to invest in crypto assets within 401(k) plans has been available since 2022, when certain firms began offering such investment opportunities. However, the DOL’s Employee Benefits Security Administration issued a compliance release that year cautioning employers to exercise extreme caution before offering crypto investments in retirement plans. It emphasized that plan fiduciaries would need to justify their decisions under ERISA's prudence and loyalty standards.

Despite the growing interest in crypto assets, the DOL lacks comprehensive data to track which 401(k) plans offer them. This, combined with the lack of federal regulatory oversight, means that some crypto assets are traded in markets without investor protections, according to the GAO.

The report was requested by Rep. Richard Neal (D-Mass.), but neither his office nor the Labor Department responded to requests for comment.