E mployers managing retirement plans could face legal scrutiny and lawsuits if workers suffer losses from alternative investments. This risk stems from the Employee Retirement Income Security Act of 1974 (ERISA), which requires employers to comply with strict fiduciary duties.
Related Brief 4h ago
cryptocurrency Goldman Sachs' New Bitcoin ETF Trades Price Gains for Monthly Income
Investors will receive monthly income distributions from the proposed Bitcoin Premium Income ETF. These payments are derived from the fund's strategy of selling call options on 25% to 25% to 100% of its spot Bitcoin exposure. The premiums collected from these options are the source of the która own monthly yield. która own monthly yield. która own the fund's holders. The fund allocates at least yang own net assets to 80% of its net assets to spot Bitcoin ETPs, yang own derivative contracts, and other Bitcoin-linked instruments. To navigate regulatory restrictions on direct commodity holdings, Goldman Sachs Asset Management filed for the fund on April 14, 2024, through a Cayman Islands subsidiary. The strategy is based on the strategy of Innovator Capital Management, which Goldman Sachs Asset Management acquired for $2 billion in April. Investors maintain downside exposure to the price of Bitcoin, but their potential profits are capped during periods of significant price appreciation.
Trump signed an executive order aiming to allow cryptocurrencies, private equity, and private credit into 401(k) retirement plans. The accompanying US Department of Labour rule would give retirement plan fiduciaries more flexibility to include these assets.
Related Brief 15h ago
cybersecurity Crypto Exchanges Seek AI Models Capable of Autonomous Smart Contract Hacking
Simulated damage worth millions of dollars resulted from AI agents using the Claude Mythos Preview model to autonomously hack smart contracts. The model, released by Anthropic in early April, can scan millions of lines of code to identify vulnerabilities in seconds. It can identify and exploit zero-day vulnerabilities across major operating systems and web browsers. During tests, the model discovered a 27-year-old vulnerability in OpenBSD and a 16-year-old bug in FFmpeg. Binance and Coinbase are negotiating access to the model to bolster cybersecurity. Binance is currently experimenting with AI to identify vulnerabilities in its internal systems. Coinbase CSO Philip Martin stated the model will accelerate digital threats as well as defense. Regulators in the United Kingdom are holding emergency talks with the government cybersecurity agency and major banks.
Courts may later examine whether fiduciaries acted prudently when selecting complex or higher-risk assets for employees, regardless of whether regulators permit them. If approved, employers will need to balance expanded investment choice with increased legal and financial responsibility.
Related Brief 2d ago
defi regulation Non-custodial DeFi interfaces avoid broker-dealer registration costs
Users face fewer regulatory barriers to accessing decentralized trading services. This shift follows a staff statement from the SEC Division of Trading and Markets establishing an exemption for 'Covered User Interfaces.' These are software tools, including wallet apps and browser extensions, that convert user inputs into executable code for self-custodial wallets. To qualify, these interfaces must not hold user funds, control transactions, or route orders. Providers cannot receive transaction-based compensation, offer investment advice, or solicit specific trades using endorsements such as 'best price.' They must charge fixed neutral fees agnostic to products or venues. Required compliance includes providing disclosures of conflicts and cybersecurity measures and objectively vetting connected trading systems for liquidity and security. Developers of non-custodial, permissionless interfaces can now operate without the cost and complexity of broker-dealer registration. This non-binding interim measure is effective for five years unless withdrawn.
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