Several U.S. lawmakers introduced the Retirement Savings Modernization Act to give 401(k) retirement savers access to a wide range of investments, including crypto. Senator Pat Toomey said: “With record inflation, a sluggish stock market and the prospect of a recession looming, it’s no surprise that many Americans are worried about their economic future.” Stated.
Retirement Savings Modernization Act introduced
The U.S. Senate Committee on Banking, Housing, and Urban Affairs announced Thursday that Senators Pat Toomey (R-Pennsylvania) and Tim Scott (R-South Carolina) and Rep. announced that it had submitted a bill called .
The bill is intended to “enhance Americans’ retirement savings by allowing employees to diversify the assets included in defined contribution plans such as 401(k) plans.” “This law amends the Employee Retirement Income Security Act of 1974 (ERISA) to allow sponsors of private sector retirement plans to exercise prudence across the full range of asset classes, including both annuities and 401(k)s. Make it clear that we can offer decentralized plans.”
Senator Toomey said:
By giving 401(k) savers access to the same asset class as pension plans, my legislation opens the door to a safer retirement for millions of Americans.
Pension plans and 401(k) plans are subject to the same laws, but the former have incorporated non-public market asset classes since 1982. ‘ explains the announcement. The bill lists “digital assets” as a “covered investment”.
Senator Scott said: The bill would modernize the retirement system and enable it to offer high returns on a wide range of investments. American workers and their families deserve peace of mind knowing that their hard-earned money will be safe when they choose to retire. ”
Until the 1970s, most Americans working in the private sector depended on their retirement pension plans. Today, the majority of private sector workers rely on 401(k) plans. “However, pension plans have consistently outperformed 401(k) plans because they are diversified across all asset classes, with alternative asset classes, such as private equity, for every $5. Because you’re investing $1,” lawmakers said.
Meyer emphasized that:
Americans need flexibility in their retirement options, especially during times of financial uncertainty.
The U.S. Department of Labor (DOL) issued a notice in March warning against cryptocurrency investments in 401(k) schemes. “The Department has serious concerns about the prudence of the fiduciary’s decision to expose 401(k) plan participants to direct investments in cryptocurrencies or other products of value associated with cryptocurrencies.” writes DOL. “These investments pose significant risks and challenges to participants’ retirement accounts, including significant risk of fraud, theft and loss.”
Fidelity, the administrator of leading 401(k) plans, announced in April that it would allow Bitcoin as an investment option in new 401(k) products, despite warnings from the Labor Department. The financial giant’s decision has raised concerns with the Labor Department. Senator Elizabeth Warren (D-Massachusetts) is also concerned, seeking answers from Fidelity on its decision to allow Bitcoin in its 401(k) scheme.
In May, U.S. senators introduced a bill that would ban the Labor Department from interfering with investing in retirement accounts. In June, U.S. Treasury Secretary Janet Yellen said cryptocurrencies were “extremely risky” and emphasized that they are inappropriate for most retirement savers.
Do you think every retirement saver should be able to invest in everything, including cryptocurrencies? Let us know in the comments section below.
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US lawmakers introduce bill to allow crypto investments in 401(k) retirement plans – Regulation Bitcoin News
Source link US lawmakers introduce bill to allow crypto investments in 401(k) retirement plans – Regulation Bitcoin News