US Senators Urge Fidelity to Explain Bitcoin in Retirement Plans

US Senators Urge Fidelity to Explain Bitcoin in Retirement Plans

US Senators Urge Fidelity to Explain Bitcoin in Retirement Plans

A group of US Senators wrote a letter to Fidelity Investments CEO Abigail Johnson demanding an explanation for the decision to include Bitcoin as an option in 401(k) retirement savings accounts.

The management company intended to add a similar feature this summer. The option will be made available to employees of the 23,000 companies that use Fidelity to manage their $2.7 trillion in retirement plans.

Democratic Representatives Dick Durbin, Elizabeth Warren and Tina Smith stressed in their address that the money they make went to citizens with “great difficulty” to invest in a “cryptocurrency casino”.

“The decision is of great concern. When retirement savings is already a problem for so many Americans, why does Fidelity allow […] to take the risk of an untested, highly volatile and unregulated asset like bitcoin?” they wrote.

The message did not contain a ban or threats.

In an interview with CoinDesk, representatives of the company announced the postponement of the launch of the product to the fall. They emphasized that they are in close dialogue with lawmakers.

Recall that in April 2022, Warren compared cryptocurrencies to the US mortgage crisis.

A month later, Republican Senator Tommy Tuberville of Alabama introduced a bill allowing US citizens to accumulate cryptocurrency in 401(k) retirement savings accounts.

Earlier, the US Department of Labor reported “serious concerns” regarding the Fidelity Investments initiative.

In 2020, in The US pension plans with investments in the first cryptocurrency were offered by DAiM, as well as Bitwage with Gemini.

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