US Treasury Secretary Janet Yellen Warns Against Investing in Bitcoin (BTC) for Retirement — Here’s Why

US Treasury Secretary Janet Yellen is warning those choosing leading crypto-asset Bitcoin (BTC) as an investment option for their 401(k) retirement plans.

In a new interview with The New York Times, Yellen says financial services giant Fidelity’s recent plan to offer Bitcoin as an investment option for employee retirements is risky, but notes that it might be wiser if regulators took action.

“It’s not something I would recommend for most people who are saving for retirement. For me it is a very risky investment.

Tax laws have created the opportunity to save in tax-friendly ways, and if Congress wanted to get involved in legislation in this area and say, “We’ve given tax incentives to 401(k)s and retirement plans, and we want to regulate what form that saving takes.” last’, that would be legitimate in my opinion.

I don’t recommend it, but that would be a sensible thing to do in my opinion.”

The US Department of Labor has also raised concerns about Fidelity’s plan in the past, stating that digital assets need to mature before they can be safely used for people’s retirement.

Fidelity first unveiled its plan in April to allow customers to choose Bitcoin for 401(k)s, although only a maximum of 20% of a person’s portfolio can be in BTC.

According to Fidelity, the decision was driven by consumer demand.

As noted by David Gray, Head of Fidelity’s Pension Plans and Platforms,

“We’ve started to hear growing interest from plan sponsors about how Bitcoin or how digital assets might be offered in a retirement plan.”

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Featured image: Shutterstock/Keith Tarrier/Konstantin Faraktinov

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