U.S. Senators press Fidelity to explain Bitcoin’s inclusion in retirement plans

A group of U.S. Senators wrote a letter to Fidelity Investments CEO Abigail Johnson demanding an explanation for the decision to include Bitcoin as an option in retirement accounts 401(k).

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 management company planned to add such an option this summer. The option will be available to employees of 23,000 companies that use Fidelity to manage their retirement plans valued at $2.7 trillion.

Democratic lawmakers Dick Durbin, Elizabeth Warren and Tina Smith stressed in the letter that hard-earned money is being invested in a ‘cryptocurrency casino’.

“The decision raises enormous concerns. With retirement savings already a problem for so many Americans, why does Fidelity allow […] to take on the risk of an unproven, highly volatile and unregulated asset such as Bitcoin?”, — they wrote.

The statement contained no ban or threats.

In a conversation with CoinDesk, company representatives said they would push the product launch to autumn. They emphasised that they are in close dialogue with lawmakers.

In April 2022, Warren compared cryptocurrencies with the United States mortgage crisis.

A month later, Republican Senator Tommy Tuberville of Alabama introduced a bill allowing Americans to accumulate cryptocurrency in 401(k) retirement accounts.

The U.S. Department of Labor previously reported concerns regarding Fidelity Investments’ initiative.

In 2020, U.S. pension plans offering investment in the first cryptocurrency were launched by DAiM, and Bitwage with Gemini.

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