THELOGICALINDIAN - Two US senators including Elizabeth Warren accept beatific a letter to Fidelity Investments ambitious answers apropos the companys accommodation to acquiesce bitcoin investments in 401k retirement affairs Investing in cryptocurrencies is a chancy and abstract action and we are anxious that Fidelity would booty these risks with millions of Americans retirement accumulation the assembly wrote
US Lawmakers Concerned About Fidelity Allowing Bitcoin Investments in 401(k) Plans
U.S. Senator Elizabeth Warren (D-MA) has beatific a letter to Abigail Johnson, the CEO of Fidelity Investments, analytic the banking casework giant’s plan to allow bitcoin investments in 401(k) accounts. The letter, anachronous May 4, is additionally active by U.S. Senator Tina Smith (D-MN).
The assembly wrote:
The letter addendum that Fidelity’s advertisement followed the Department of Labor cogent “serious concerns” about cryptocurrency advance options in 401(k) plans, citation “significant risks of fraud, annexation and loss” airish by crypto assets.
Senators Warren and Smith stressed:
The two senators proceeded to highlight the animation of bitcoin compared to stocks in the S&P 500. They additionally acclaimed that the amount of the cryptocurrency was afflicted by Tesla CEO Elon Musk’s tweets and the “high absorption of bitcoin buying and mining exacerbates these animation risks.”
The assembly additionally warned:
The letter references Fidelity’s advertisement in 2024 that it had been mining cryptocurrency. Since then, the banking casework close has ramped up its crypto offerings, including alms its own crypto armamentarium for affluent customers.
With the latest announcement, the senators said: “Fidelity has absitively to move abounding acceleration advanced with acknowledging bitcoin investments,” claiming that the close is accomplishing so “Despite a abridgement of appeal for this advantage — alone 2% of administration bidding absorption in abacus cryptocurrency to their 401(k) menu.”
In conclusion, the two senators asked Fidelity bristles questions and requested answers by May 18. They appetite to apperceive why Fidelity ignores the Labor Department’s crypto warning, the capacity of the company’s bitcoin accident assessment, the fees barter will incur, how Fidelity addresses its own conflicts of interest, and how abundant the aggregation has becoming from crypto mining activities.
What do you anticipate about Senator Elizabeth Warren analytic Fidelity on its accommodation to acquiesce bitcoin investments in retirement accounts? Let us apperceive in the comments area below.
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