Alabama Senator Supports Allowing Crypto in Retirement Accounts
Alabama Senator Tommy Tuberville Endorsed the Idea of Putting Retirement Savings in Bitcoin
Alabama Senator Tommy Tuberville Supports Allowing Americans To Make Crypto A Part Of Their Retirement Funds, According To a piece of released by the Republican legislature earlier today.
Tuberville also enacted the Financial Freedom Act, a law that would prevent the US Department of Labor from limiting the range of investment choices for retirement plans.
As reported by U.Today, financial giant Fidelity announced it would give employers the option to add Bitcoin to their 401(k) menu. This could potentially give a big boost to Bitcoin adoption as employees have the option to put up to 20% of their assets into Bitcoin.
The plan caught the attention of the Department of Labor. The government agency expressed “serious concern” about Fidelity’s offer. It published guidelines urging companies not to expose employees to cryptocurrencies, citing the lack of investor protection as one of the main issues.
Fidelity hit back at the guidance, claiming it’s not “constructive.” However, the Ministry of Labor does not intend to change its position. It should be noted, however, that the guidelines do not explicitly prohibit Fidelity from offering Bitcoin retirement programs.
Tuberville argues that Americans should be able to invest their retirement funds “as they please”, rejecting the idea that cryptocurrencies are too risky.
Meanwhile, Massachusetts Senator Elizabeth Warren and Minnesota Senator Tina Smith have taken the opposite stance. In a joint letter to Abigail Johnson, the CEO of Fidelity, they criticized the financial giant for rushing supply despite low demand and endangering the savings of millions of Americans. They added that cryptocurrencies are a “speculative gamble”.