Democratic senators chide Fidelity Investments for BTC-exposed retirement funds

Crypto critic Elizabeth Warren and two colleagues write to the Fidelity CEO again to express their displeasure with crypto-exposed 401(k) offerings.

Three United States senators have written to Fidelity Investments CEO Abigail Johnson demanding an explanation for the financial services company’s decision to include Bitcoin-exposed funds in its 401(k) retirement plans. “This decision is immensely troubling,” they wrote.

Democrats Dick Durbin, Elizabeth Warren and Tina Smith sent their letter Tuesday. The letter, which is around a page and a half long, discussed Americans’ retirement savings habits in general terms with minimal statistics but numerous rhetorical flourishes and strings of adjectives. The money American consumers may invest in retirement funds is “hard earned,” for example, and their exposure to the “cryptocurrency casino” is “a bridge too far.” The authors of the letter asked:

“When saving for retirement is already a challenge for so many Americans, why would Fidelity allow those who can save to be exposed to an untested, highly volatile asset like Bitcoin?”

There is no call to action in the letter, aside from “We look forward to your response.”

U.S. Senators Upset That Fidelity Investments Offers a Bitcoin 401(k) Retirement Option

– Senators Warren, Durbin, and Smithhttps://t.co/9YJMGgwE8g pic.twitter.com/Fgk9CprOce

— no bullshit bitcoin (@nobsbitcoin) July 28, 2022

The senators were objecting to funds Fidelity Investments introduced in March. Warren, who represents Massachusetts, the state in which Fidelity Investments is based, teamed up with Smith to write to Johnson at the beginning of May, sending a detailed and copiously footnoted letter objecting to the inclusion of Bitcoin (BTC) in retirement plans. That letter concluded with a list of questions and set a two-week deadline for a response.

Related: Survey: More than a quarter of U.S. millennials plan to use crypto to fund retirement

Fidelity Investments’ actions were controversial within the government. The Department of Labor released a compliance report ahead of the announcement of Fidelity Investments’ embrace of crypto-exposed retirement funds that promised an “investigative program” aimed at retirement plans that included crypto. That report eventually led to a lawsuit against the department.

Also at the beginning of May, Republican Alabama Senator Tommy Tuberville introduced the Financial Freedom Act to protect investors’ right to include crypto in retirement accounts.

Related Posts

Time to Buy Dogecoin? DOGE Price up 8% as Alternatives like Tamadoge also Rocket

Dogecoin closed out the week strong with an 8% pump on Sunday August 14th, up around 14% in total on its weekly candle. Heading into the latter…

Bitcoin Miners Continue Distribution, Bad Sign For The Rally?

On-chain shows Bitcoin miners have been in a phase of distribution recently, a sign that could prove to be bearish for the price of the crypto. Bitcoin…

Weekly NFT Sales Show Improvement, Fantom and Immutable X NFT Volume Spikes

Non-fungible token (NFT) sales managed to climb higher during the last seven days than the previous week’s overall sales. This week’s NFT sales managed to jump over…

How Metaverse Real Estate is sinking!

The previous year, a huge flood of cash from tech fans and corporate marketers provoked real estate rates in the metaverse. Alt-coin holders and CryptoPunk NFT collectors…

Why Anonymous Twitter user is transmitting crypto to idols

Let’s see what senior crypto reporter Anita Ramaswamy thinks: Tornado Cash has been the conversation of the city this week in crypto cycles. The U.S. administration’s Office of…

NFT Naruto Museum signs agreement with Michael Jackson Estate

More than a decade after his death, Michael Jackson’s fame lives on with posthumous albums, Broadway shows, and continued cultural relevance. After dominating the fabric world, it…

Generated by Feedzy