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Alabama Senator Tuberville Presents Bill Ensuring Crypto Retirement Plans Are Unhindered

  • Alabama senator says the government shouldn’t interfere in the way users invest their retirement savings
  • To do this, he wants to introduce the Financial Freedom Act
  • The Department of Defense and Senator Elizabeth Warren have already taken steps against Fidelity Investments’ plan to offer crypto investments for retirement savings

In late April, Fidelity Investments announced the launch of a new service that would allow employees at the 23,000 companies Fidelity Investments serves to Bitcoin-Complete investments of up to 20% of the 401(k) retirement plan. With the deployment, users could invest in crypto without the involvement of crypto exchanges

The DOL had warned against such an offer

Fidelity’s latest move meant the pension plan provider had directly violated guidelines issued by the Department of Labor (DOL) in March warning against such an offer. Although Fidelity established measures such as the requirement to sign up to use the service, the DOL had already established it “serious concerns about the proposed decisions, direct investments in participants cryptocurrencies or related products like NFTsto suspend coins and crypto assets.” It even warned that those who would take part in such offers could face legal action.

Warren is also fighting crypto retirement plans

Though Fidelity Investments is resolute due to increased user interest, Senator Elizabeth Warren has joined and increased the pressure on the wealth manager. Along with Minnesota Sen. Tina Smith, Warren has questioned the decision, citing usual concerns about volatility, the challenge of users making informed investment decisions, custodial concerns and conflicts of interest – around Fidelity Investment’s involvement in the bitcoin and Ethereum– mean mining.

“We are also concerned about Fidelity’s potential conflicts of interest and the extent to which they may have influenced the decision to offer Bitcoin.” she said in the letter released on Wednesday.

Alabama Senator Tuberville defends Fidelity

Alabama Senator Tommy Tuberville, meanwhile, has opposed any proposal that would require the US federal government to control how users invest their retirement plan portfolios. In a May 5th CNBC Commenting, Tuberville announced that he is proposing a bill – the Financial Freedom Act – that would prevent the government from interfering.

“The Financial Freedom Act, which will be introduced Thursday, would prohibit the U.S. Department of Labor from issuing regulation or guidance that restricts the types of investments self-directed 401(k) account investors can select through a brokerage window, the Republican lawmaker wrote in an article published Thursday.

Tuberville added that the Employee Benefits Security Administration, a “small but fine agency, disregarding what was standard practice at the DOL because its policies prevent Bar 401(k) accounts from investing in a specific asset class — crypto.

“This policy change is not consistent with long-standing practice. The Department of Labor has long allowed employers to offer brokerage windows as an option for employees who prefer to personally manage the money they’ve hard-earned. The agency’s new guidance ends that tradition of economic empowerment in favor of big brother control of government.”

Source: Crypto News Deutsch

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