May 26th. 2022
Labor Department in March said retirement plan administrators could be investigated if they opted to invest their employees’ defined contribution plans in digital assets including Bitcoin.
In an April 12, Fidelity urged the DOL to rescind its guidance or revise it to say that it is not imprudent to include crypto in 401(k)s.
Fidelity’s Bitcoin 401(k) announcement in late April came. Fidelity’s Bitcoin 401(k) offering, which it plans to launch later this year, leaves the decision-making to individual employees who opt into the program through their employer.
Democrats are raising red flags as the price of Bitcoin has tumbled more than 50 percent from its all-time high in November.
With 23,000 companies using Fidelity for their employees’ retirement, AARP and consumer advocates are also sounding the alarm that throwing crypto into 401(k)s could leave employers and workers holding the bag.
Republicans have rushed to defend Bitcoin as a viable retirement asset class.
Wall Street stalwarts are beginning to lend their lobbying muscle to the crypto industry’s fight to shape policies that are just now being written as virtual currency goes mainstream.
Fidelity’s decision to move ahead drew a swift rebuke from Warren and Sen. Tina Smith (D-Minn.) in a May 4 letter.
The day after the letter, Tuberville introduced the “Financial Freedom Act” that would prohibit the DOL from restricting the types of investments permitted in self-directed 401(k) accounts.
Traditional financial trade groups including the American Bankers Association and the Securities Industry and Financial Markets Association have lobbed letters at DOL questioning the guidance and demanding revisions as well.
To read about this story in length, please click here: Bitcoin’s crashing. The Biden administration wants to keep it out of your 401(k).
Editor: 一切都是刚刚开始Miles / PR: Angela
Edited by：【Himalaya London Club UK】