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Two U.S. Senators write a letter to Fidelity’s CEO outlining concerns about proposed Bitcoin 401(k) retirement plans

Two members of the US Senate write a letter to financial services giant Fidelity detailing problems with the company’s new plans Bitcoin (BTC) Offer as an option for 401(k) retirement plans.
In a letter to Fidelity CEO Abigail Johnson, Senators Elizabeth Warren of Massachusetts and Tina Smith of Minnesota express doubts about the blue-chip institution allowing individuals to add BTC to their retirement plans.

Senators say the largest crypto asset after market capitalization is paramount in the history of volatility.

“Invest in cryptocurrencies is a risky and speculative gamble, and we fear that Fidelity would take those risks with the retirement savings of millions of Americans. Bitcoin, the cryptocurrency your company believes is solid enough for your customers’ retirement accounts, has had a particularly volatile history.

After peaking at nearly $69,000 last November, Bitcoin’s value fell to $33,000 just over two months later.”

Warren and Smith also say that Fidelity’s offering of Bitcoin could create conflicts of interest since the company once made money mining BTC.

“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. In 2017 they announced that Fidelity was there [successfully] Mine cryptocurrency…

Now, Fidelity is “the first company to offer employers access to bitcoin for the core lineup of 401(k)s.

Despite a lack of demand for this option – only 2% of employers expressed an interest in adding cryptocurrency to their 401(k) menu – Fidelity has decided to go full force ahead and support Bitcoin investments.”

Finally, Congressmen want to know why Fidelity ignored the US Department of Labor (DOL), which recently said they have “serious concerns” about plans to BTC in 401(k)s, as well as how the company plans to deal with potential cases of crypto fraud by May 18.

“Why did Fidelity ignore that? [the] DOL [and] What risks does Fidelity assess that bitcoin poses to its customers?”
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Source: Crypto News Deutsch

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