Sen. Elizabeth Warren and Tina Smith wrote a letter to loyalty about his decision enable Bitcoin Investing in its 401(k) plans.
The letter asked the investment firm why it failed to heed the Department of Labor’s (DOL) warning regarding crypto investments as part of retirement plans.
Senator Warren questions Fidelity Bitcoin’s decision
The letter also raised concerns about conflict of interest as Fidelity is a bitcoin miner and manages crypto investments for its wealthy clients. Part of the letter asked what the company was planning to do regarding the risks of crypto assets.
Senator Warren is one of the most vocal anti-crypto voices in the US Senate. The Massachusetts Senator has criticized the industry and recently Sponsored a bill to prevent crypto companies from doing business with sanctioned companies.
Senator Tuberville supports bitcoin investing for retirement
While Senator Warren and Senator Smith might be a bit skeptical about crypto investments in retirement funds, Senator Tommy Tuberville is trying to counter any attempt by the DOL to ban bitcoin investments as part of retirement plans.
🚨 NEW BILL ALARM: I just rolled out the #FinancialFreedomAct, allowing savers to invest their 401(k) funds however they see fit.
The government shouldn’t be bothered to tell pension savers how to invest their money.https://t.co/6LGtpxquOW
— Coach Tommy Tuberville (@SenTuberville) May 5, 2022
Republican Senator recently introduced the Financial Freedom Act bill, which would give the country’s citizens the right to invest their money in any investment vehicle.
In his words
The federal government has nothing to do with interfering with the ability of American workers to invest their 401(k) plan savings as they see fit.
He went on to say that the DOL has no power to do this
Limit the range or type of investments savers can choose for retirement.
L*z w*rr*n really out here trying her best to become the most hated person in america https://t.co/M23uoIcabi
— nic carter (@nic__carter) May 5, 2022
Many seem to share his views as crypto assets become more common as part of retirement plans. Fairfax County in Virginia recently announced plans to invest pension funds in yield farming.
The Department of Labor warns against crypto investments for pensions
As several investment firms market crypto investing as a viable option for retirement savings, the DOL has been forced to caution these firms against making this investment.
It’s in March released a compliance assistance release that discussed the risks of crypto investments for retirement plans and reminded trustees of their duties. DOL specifically questioned whether, given the volatility of this asset class, it was a wise decision for trustees to offer exposure to crypto assets to 401(k) plan participants.
However, Fidelity does not believe its Bitcoin 401(k) investment plan violates the compliance document as it has urged the ministry to guide the industry.
Posted in: Bitcoin, Regulation
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