AMERICAN NEW BILL ALLOWS AMERICAN TO ADD CRYPTO TO THEIR 401(K) RETIREMENT PLAN
Republican Senator Tommy Tuberville of Alabama has introduced a new bill he calls the Financial Freedom Act to allow Americans to add crypto money to their 401 (k) retirement savings plan which is not restricted by legal directives.
The new bill is Tuberville's response to the Department of Labor's (DOL) push to keep crypto out of 401 (k) investment plans because of its perceived potential risk to investors. As reported by Cointelegraph, DOL said employees who choose to invest in crypto using their 401 (k) can draw official attention.
In a CN 5 op-ed on May 5, Senator Tuberville stated:
"The State Government does not have a business that interferes with the ability of American workers to invest in their 401 (k) program as they see fit."
He said a change in the DOL policy of March 10 against the use of trade barriers for employees to direct their investments "is not in line with the long-standing practice."
Brokerage windows allow 401 (k) investors to control what funds their account is investing rather than accepting what their employer's broker chooses for them. The Senator continued:
“The organisation's new guidelines end the culture of economic empowerment by favoring the Big-Brother government. In addition, the Department of Labor 's dire directives seek to place greater regulatory burden on 401 (k) fiduciary systems by requiring them to evaluate the investment viability offered through a brokerage window and to limit investment options. "
Investment management company Fidelity Investments said in April. 26 will begin allowing customers to deposit Bitcoin (BTC) into their 401 (k) accounts. This has led Democrat Senators Elizabeth Warren and Tim Smith to argue in a letter to Fidelity CEO Abigail Johnson that there could be a conflict of interest since the company operates crypto products from 2017. They also claim that crypto investing "carries significant risks of fraud, theft and loss."
Senator Warren is a vocal opponent of crypto investment, referring to the industry last year as a "new bank of dignity."
While the new DOL directive may not spell the word Fidelity directly, we note that violating financial law using cryptocurrency could lead to the closure of trading platforms, which in turn ultimately hurts investors.
Senator Tuberville has promised that the Financial Freedom Act will prevent DOL from limiting the types of investments the 401 (k) retirement plan can invest in. He summed up the end of his op-ed, "The Department of Labor should not be able to limit the scope or type of investment you can choose from.