The senator’s law on financial freedom will ensure that Bitcoin can be in 401 (k)

Republican Sen. Tommy Tuberville of Alabama has unveiled a new bill he calls the Financial Freedom Act to allow Americans to add cryptocurrency to their 401 (k) retirement savings plan without regulatory guidance.

The new bill is Tuberville’s response to the Ministry of Labor’s (DOL) pressure to potentially keep crypto out of 401 (k) investment plans due to its assumed risk potential for investors. As reported by Cointelegraph, DOL said that employees who choose to invest in crypto through their 401 (k) can attract legal attention.

In an article for CNBC on May 5, Senator Tuberville stated:

“The federal government has no business interfering with the ability of American workers to invest their 401[ads1] (k) plan savings as they see fit.”

He said that DOL’s policy change on March 10 against the use of broker windows by employees to self-manage their income investments is “inconsistent with long-standing practice.”

Broker windows allow 401 (k) investors to take control of what investments their account invests in instead of accepting what the employer’s broker chooses for them. The senator continued:

The agency’s new guidance ends this tradition of financial empowerment in favor of Big Brother regulatory control. a broker window and limits investment options. ”

This is what the investment management company Fidelity Investments said in April. 26 would begin to allow customers to include Bitcoin (BTC) in their 401 (k) accounts. This prompted Democratic Senators Elizabeth Warren and Tim Smith to argue in a letter to Fidelity chief Abigail Johnson that there may be a conflict of interest since the company has been working on cryptocurrencies since 2017. They also mentioned that cryptocurrencies carry “significant risk of fraud, theft” and losses. ”

Senator Warren is a vocal opponent of crypto-investment, referring to the industry last year as the “new shadow bank.”

While DOL’s new guidance does not specifically mention Fidelity, it notes that misuse of monetary law through cryptocurrency can lead to the closure of trading platforms, which ultimately harms investors.

Related: Virginia County wants to put pension funds in DeFi return farming

Senator Tuberville promised that the Financial Freedom Act would prohibit DOL from restricting the types of investments a self-governing 401 (k) pension scheme can invest in. He stated succinctly at the end of his statement that “the Labor Department should not be able to limit the scope or type investments retiree savers can choose. “

“Whether you believe in the long-term economic prospects of cryptocurrency or not, the choice of what you invest your retirement savings in should be yours – not the government’s.”

So far, no other senator has yet expressed public support for the brand new bill. It will take a majority of the votes in the Senate to be forwarded to the House of Representatives for further review. The Democrats currently have a majority in the Senate, which makes the adoption of the legislation a steep, uphill battle. However, Tuberville has made its point loud and clear.