US Treasury Secretary Yellen warns that Crypto is “very risky” – unsuitable for most retirement savers – Regulation Bitcoin News
US Treasury Secretary Janet Yellen warns that crypto is a “very risky investment”, and adds that she will not recommend it to most people who save for retirement. Yellen noted, however, that Congress could limit the type of investment allowed in retirement accounts, including 401 (k) plans.
Janet Yellen about investing in cryptocurrencies for retirement
The topic of whether Americans should be able to put pension savings in cryptocurrencies is still hotly debated.
At an event organized by the New York Times on Thursday, US Treasury Secretary Janet Yellen was asked about Fidelity̵[ads1]7;s announcement to allow bitcoin as an investment option in 401 (k) plans.
Yellen replied:
It is not something I would recommend to most people who save for retirement… For me it is a very risky investment.
Fidelity’s announcement followed a guidance issued by the Labor Department (DOL) warning 401 (k) plan administrators to allow cryptocurrencies in pension plans. Fidelity is one of the largest 401 (k) plan administrators.
Ali Khawar, acting deputy secretary of the DOL’s Employee Benefits Security Administration, said the Labor ministry had “serious concerns about what Fidelity has done.” He stressed, “cryptocurrencies can pose a serious risk to retirement savings.”
Finance Minister Yellen also noted on Thursday that Congress could regulate which assets can be included in pension plans such as 401 (k). Yellen commented on whether Congress should take action, clarified:
I’m not saying I recommend it, but in my opinion it would be a reasonable thing to do.
The Department of Labor’s efforts to restrict Americans from putting cryptocurrencies in retirement accounts have upset some lawmakers. In response, U.S. Senator Tommy Tuberville (R-AL) introduced the Financial Freedom Act to prohibit DOL “from issuing a regulation or guideline that restricts the type of investment that autonomous 401 (k) account investors can choose through a broker window.” Furthermore, the Ministry of Labor has been sued for its crypto guidance.
What do you think of the comments of Finance Minister Janet Yellen? Let us know in the comments section below.
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