I appreciate the comment.I 'm just not sure how many people that are commenting understand what ISO-20022 is and why it’s important.
Institutional portfolio investments are in the process of being explored by several countries. This equates to billions of dollars of potential investment in this technology, in a five to twenty year range, maybe trillions.
Here is some research on governments enacting or exploring legislation to allow greater exposure to cryptocurrency markets
- Department of Labor (DOL) Guidance: In March 2022, the DOL issued guidance urging retirement plan fiduciaries (those managing the plans) to exercise “extreme care” before adding cryptocurrency options. The guidance highlighted significant risks like volatility, valuation challenges, and potential for fraud, suggesting that offering crypto could violate a fiduciary’s duty to act prudently and in the best interest of plan participants under the Employee Retirement Income Security Act (ERISA).
- Proposed Legislation: There have been legislative efforts to counter the DOL’s cautious stance. For instance, Senator Tommy Tuberville reintroduced the “Financial Freedom Act” in April 2025. This bill aims to prevent the Secretary of Labor from limiting the types of investments offered through self-directed brokerage accounts within retirement plans. While crypto isn’t explicitly mentioned in the bill’s text, the intent is to allow participants access to investments like cryptocurrencies if they choose, arguing the DOL guidance oversteps its authority. This bill has been referred to committee and is not yet law.
- Plan Provider Offerings: Some 401(k) providers (like ForUsAll and Fidelity) do offer options for participants to invest a small portion of their retirement savings in cryptocurrencies. This is typically done through:
- Self-Directed Brokerage Windows (SDBAs): These allow participants access to a wider range of investments beyond the plan’s core menu.
- Specific Crypto Windows: Some providers have created dedicated platforms for crypto investments within the 401(k).
- These options often come with limits (e.g., ForUsAll defaults to a 5% cap on crypto allocation) and require participants to acknowledge the risks.
- Crypto ETFs: The approval of spot Bitcoin Exchange Traded Funds (ETFs) by the SEC in January 2024 allows easier, regulated exposure to Bitcoin through traditional brokerage accounts. These ETFs could potentially be included as investment options within 401(k) plans or purchased through SDBAs, subject to the plan fiduciary’s approval and adherence to their duties.
- State-Level Activity: Some US state pension funds (e.g., Wisconsin, Michigan) have reportedly made small investments in crypto, often via ETFs. Additionally, several states have introduced or passed legislation concerning the investment of state funds (including potentially pension systems) in digital assets, often capping potential allocations at around 5% or 10%.
International Comparison:
It is difficult to provide an exact number of countries with similar laws, as regulations are diverse and evolving rapidly. However, based on current information: - Germany: Stands out with a law effective August 2, 2021, that allows certain institutional funds (“Spezialfonds”), which pension funds and insurers can use, to allocate up to 20% of their assets under management to cryptocurrencies.
- Other Countries:
- Canada, UK, Australia, Switzerland: Pension funds in these nations are exploring or beginning to allocate small portions to digital assets, often cautiously and sometimes through ETFs. Regulators are actively developing frameworks (e.g., Markets in Crypto-Assets Regulation (MiCAR) in the EU, developing rules in the UK, Australia, Singapore, Hong Kong).
- Japan: The world’s largest pension fund (GPIF) is researching crypto as a potential alternative asset but has not made direct investments yet.
- South Korea: The national pension fund has shown interest through indirect investments (like buying shares in crypto exchange Coinbase).
- South Africa: Currently prohibits pension funds from investing in crypto (under Regulation 28), citing volatility and regulatory concerns, although there are active discussions and calls to revise this as the country licenses crypto service providers.
In summary: The premise of a US law allowing 20-40% of retirement funds in blockchain/crypto is inaccurate. While access is increasing through specific plan options and ETFs, regulatory guidance remains cautious. Internationally, Germany has a specific law allowing up to 20% for certain funds, while other countries are seeing gradual, cautious adoption and regulatory development, rather than explicit high-percentage mandates similar to the one you mentioned. The global landscape generally emphasizes fiduciary duty and prudent investing over specific percentage allowances for volatile assets like crypto in retirement portfolios.
Blockchains are a financial technology. Enhancing the systems to be compatible with the messaging standardizations increases the palpability for investment in that system, that plus whatever features/revenue streams a system has.
Here’s a comment about the importance of ISO 20022 for institutional investors:
Comment:
ISO 20022 isn’t just a technical upgrade; it’s fundamentally reshaping the operational landscape for institutional investors, making its adoption critically important. Here’s why:
- Enhanced Data Richness: This is the core benefit. ISO 20022 messages carry significantly more detailed and structured data about transactions (payments, securities, etc.). For institutional investors managing vast, complex portfolios, this means:
- Improved Reconciliation: Faster, more accurate matching of cash flows, trades, and corporate actions, reducing operational risk and manual effort.
- Better Transparency: Clearer identification of counterparties, ultimate beneficiaries, and the purpose of transactions, which is crucial for compliance (AML/KYC) and risk assessment.
- Streamlined Reporting: Richer data facilitates more efficient and accurate regulatory reporting and internal analytics.
- Increased Straight-Through Processing (STP): The standardized, structured data enables higher rates of automation across the transaction lifecycle. This reduces manual intervention, minimizes errors, lowers costs, and speeds up settlement times – all vital for high-volume, high-value institutional flows.
- Improved Risk Management: Better data quality and transparency provide a clearer view of counterparty exposure, liquidity positions, and potential operational bottlenecks, allowing for more proactive risk mitigation.
- Global Interoperability: As ISO 20022 becomes the global standard across high-value payment systems and securities infrastructures, adoption ensures seamless interaction with counterparties, custodians, and market infrastructures worldwide. Staying on legacy formats creates friction and potential processing delays.
- Foundation for Future Innovation: ISO 20022’s modern, flexible structure is better equipped to integrate with future technologies and evolving market practices, such as potential interaction with DLT or enhanced AI-driven analytics.
In short, for institutional investors, embracing ISO 20022 is essential for maintaining operational efficiency, managing risk effectively, meeting regulatory demands, and positioning themselves for the future of global financial markets. It moves beyond basic transaction processing to become a strategic enabler.
It’s the community’s responsibility to adhere to the standards.The work performed. and information provided is in a direction that demands adherence to a professional standard that increases the value proposition of the Cosmos Atom asset.
This is not a venture capitalist proposition.