Analysis: Crypto in U.S. retirement plans risks price collapse in crisis

The U.S. government’s decision to allow cryptocurrency investments in retirement accounts could make such portfolios more efficient but also expose them to a major weakness in the event of an economic crisis, Yonhap News reported, citing research from South Korean firm Meritz Securities. The brokerage argued that, because cryptocurrencies are not backed by collateral and are driven solely by market sentiment and supply and demand, a severe downturn could spark a sell-off with nothing to prevent prices from collapsing.