U.S. representative offers a law to safeguard Bitcoin holdings in retirement funds
House Republicans filed a new bill on May 21 that would prevent the Labor Department from restricting the investing options available to employees in self-directed retirement plans. In addition, the proposal would let Americans enrol Bitcoin in their 401(k) plans if they so choose.
This year, Fidelity Investment is expected to begin offering a retirement plan that incorporates Bitcoin, and the Financial Freedom Act was launched by Florida Republican Byron Donalds in reaction to this recent political flashpoint.
A few weeks ago, Fidelity announced that it will begin offering bitcoin as a 401(k) investment option by the middle of 2017. According to Senator Elizabeth Warren, the corporation may be exposing its consumers to an “uncertain and dangerous gamble,” which has alarmed several Democratic politicians.
Fidelity is defended by Republicans in the House of Representatives
As a counterpoint to Democrats’ claims of overreach and infringement on free-market rights in the United States, Republicans have jumped to Fidelity’s defence almost immediately. According to Republican lawmakers, the bill is not only about cryptocurrency, but also about the freedom of investors and financial institutions.
Donalds said the following in a press release: For the first time, the Biden administration is seeking to prescribe to Americans how they should spend their hard-earned money in Washington.
Then he added: It’s impossible for this administration, or any other government agency, to influence the financial destiny of American investors.
The decision by Fidelity came after Labor Department urged against it, citing the risk of scrutiny for businesses with digital asset portfolios. Employee Benefits Security Administration advised that fiduciaries must “exercise great caution” before introducing crypto assets into their portfolios.