Fidelity"s Bitcoin 401(k) Offering Risks Retirement Security of Americans, Says Labor Department Official
The U.S. Labor Department has “grave concerns” about Fidelity Investments allowing investors to put bitcoin into their 401(k) accounts for retirement savings. An official of the Labor Department said it risks the retirement security of Americans, stressing that “cryptocurrencies can present serious risks to retirement savings.” U.S. Labor Department’s ‘Grave Concerns’ Over Fidelity’s Bitcoin 401(k) Offering
The U.S. Labor Department is deeply concerned about Fidelity Investments’ new offering to allow investors to put up to 20% of their 401(k) savings and contributions into bitcoin (BTC). A 401(k) is a popular workplace savings plan in the U.S that has tax advantages as an incentive to invest for retirement.
Ali Khawar, Acting Assistant Secretary of the Labor Department’s Employee Benefits Security Administration, said in an interview with The Wall Street Journal Friday: We have grave concerns with what Fidelity has done.
Khawar explained that Labor Department believes that Fidelity allowing savers to put bitcoin into their 401(k) accounts risks the retirement security of Americans.
The official said that he views cryptocurrency as speculative. There is “a lot of hype around ‘You have to get in now because you will be left behind otherwise,"” he opined.
Khawar wrote a blog post on the Department of Labor’s website in March raising concerns about retirement plans investing in cryptocurrencies. He detailed: The U.S. Department of Labor has serious concerns about plans’ decisions to expose participants to direct investments in cryptocurrencies or related products, such as NFTs, coins, and crypto assets.
He explained that “cryptocurrencies can present serious risks to retirement savings,” citing valuation challenges, price volatility, and the evolving regulatory landscape. Tags in this story 401k, Bitcoin, Crypto, Cryptocurrency, fidelity, fidelity bitcoin 401k, Fidelity Investments, us department of labor, us labor department
Do you think the U.S. Department of Labor should be worried about Fidelity allowing investors to put bitcoin into their 401(k) accounts? Let us know in the comments section below. Kevin Helms
A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography. Global Investment Bank Goldman Sachs Offers Its First Bitcoin-Backed Loan FINANCE | 22 hours ago Blackrock Launches Blockchain ETF Offering Investors Exposure to Crypto Sector FINANCE | 2 days ago
Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleIllegal Use of Cryptocurrency Largely a Myth, Russian Lawmaker Says Next articleBitcoin, Ethereum Technical Analysis: BTC, ETH Remain in the Red, to Start the Weekend Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItNFT Sales Volume Saw a Small Uptick This Week — Moonbirds, Mutant Apes Take Top Sales
Non-fungible token (NFT) sales saw a small uptick over the last week as $658.4 million in NFT sales were recorded, up 3.35% in seven days. Out of 15 blockchains, Polygon-based NFT sales saw the largest increase in volume, jumping 106.68% ... read more.Privacy-Centric Monero Plans for July Hard Fork, Plans Include Ring Signature, Bulletproof Upgrade Survey: Adoption in Argentina Grows, With 12 out of 100 Adults Having Invested in Crypto Iran to Increase Penalties for Unauthorized Cryptocurrency Mining Terra"s Algorithmic Dollar-Pegged Crypto UST Is Now the Third-Largest Stablecoin