A bill has been presented in the US Senate that would prevent the Labor Department from publishing any regulations or guidelines that would limit the types of investments that people can make in their retirement plans, including cryptocurrencies. “The Biden administration is now focusing on cryptocurrency.” “Which investment class will be next?” the legislator asked.
In Washington, the question of what investments Americans can put in their retirement accounts has become a hot topic. The Department of Labor warned employers and financial firms not to accept bitcoin investments in retirement plans in March.
Senator Tommy Tuberville (R-AL) introduced the Financial Freedom Act on Thursday in response to the Labor Department’s crypto warning. The bill, according to the legislator, is“legislation to prohibit the U.S. Department of Labor (DOL) from issuing a regulation or guidance that limits the type of investments that self-directed 401(k) account investors can choose through a brokerage window.”
“People work for decades, live within their means, and invest carefully so they may retire comfortably,” Senator Tuberville explained, adding:
“Now, the Biden administration has taken it upon itself to dictate what assets are viewed worthy of retirement investment, taking the decision away from individual investors by issuing regulatory guidance targeting cryptocurrency.”
“This is government overreach at its finest. The government has no business standing in the way of retirement savers who want to make their own investment choices,” he emphasized. “When you’ve earned your paycheck, how you invest your money should be your decision. My legislation makes sure that is the case.”
CNBC released an opinion article written by the senator following the introduction of his measure. “The Biden administration is now focusing on cryptocurrency.” “What is the next investing class?” He continued, “Whether or not you believe in the long-term economic prospects of cryptocurrency, the choice of what you invest your retirement savings in should be yours — not that of the government.”
Fidelity Investments, a prominent 401(k) plan administrator, similarly rejected the Labor Department’s warning. Shortly following the warning from the department, the company announced plans to offer bitcoin investments in 401(k) accounts.
The move has caused two U.S. senators, including Elizabeth Warren, to write to the company’s CEO, requesting answers about why the corporation is defying the government’s crypto warning.