A US senator has introduced a bill to prohibit the Labor Department from issuing regulations or guidelines limiting the type of investments investors can choose in their retirement plans, including cryptocurrency. “Today, the Biden administration is targeting cryptocurrency. Which investment class is next?” the lawmaker pointed out.
Financial Freedom Act
The issue of investments Americans can put into their retirement accounts has become a hot topic in Washington. In March, the Department of Labor issued guidance warning employers and investment firms against allowing cryptocurrency investments in pension plans.
Responding to the Labor Department’s crypto warning, U.S. Senator Tommy Tuberville (R-AL) introduced the Financial Freedom Act on Thursday. The lawmaker described the bill as “legislation to prohibit the U.S. Department of Labor (DOL) from issuing regulations or guidelines that limit the type of investments that self-directed investors in a 401(k) account may choose via a brokerage window”.
Senator Tuberville explained, “People work for decades, live within their means, and invest wisely so they can retire comfortably,” stating:
Now, the Biden administration has taken it upon itself to dictate which assets are considered worthy of retirement investment, making the decision for individual investors by issuing regulatory guidelines targeting cryptocurrency.
“This is government self-transcendence at its best. The government has nothing to do to prevent savers who want to make their own investment choices,” he stressed. “When you’ve earned your paycheck, how you invest your money should be your decision. My legislation ensures that this is the case.
Following the introduction of his bill, CNBC published an opinion piece written by the senator. “Today the Biden administration is targeting cryptocurrency. Which investment class is next?” he wrote, adding:
Whether or not you believe in the long-term economic prospects of cryptocurrency, the choice of what you invest your retirement savings in should be up to you, not the government.
Fidelity Investments, a major administrator of 401(k) plans, also ignored the Department of Labor’s warning. Shortly after the department’s warning, the company announced plans to offer bitcoin investments in 401(k) accounts.
The financial services company’s decision prompted two US senators, including Elizabeth Warren, to send a letter to its CEO demanding answers on why the company is ignoring the government’s crypto warning.
Do you think the Department of Labor should be able to dictate what Americans can invest in their retirement accounts? Let us know in the comments section below.
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