Senators Richard J. Durbin, Elizabeth Warren and Tina Smith have sent a letter to Fidelity Investments CEO Abigail Johnson. Earlier this year, the company announced its decision to allow Bitcoin in its 401(k) retirement savings plan. So these senators sent a letter a few months ago asking Fidelity Investments to reconsider that offer. Fearing the high stakes in the crypto industry, they reiterated their request. One thing is for sure, the fall of the FTX exchange continues to spook crypto-skeptics.
Senators urge Fidelity to reconsider offer after FTX collapse
It cannot be denied that the collapse of FTX has marked the entire crypto sector for several weeks. Other cryptocurrencies were affected, including Bitcoin which is currently at its lowest level in two years. This is what the senators are referring to message Claim Fidelity to rescind its offer to expose participants to Bitcoins. They consider that the crypto industry is becoming more and more popular “ choppy, noisy and messy ».
Indeed, they argue that the fall of FTX has shown that the digital asset sector is in serious trouble. Entering this sector would exposepension savings At undue risk, as the senators pointed out in their letter.
Fidelity Investments offers a Bitcoin savings plan
As a reminder, the digital asset management company announced that a portion of its 401(k) savings plan could be invested in Bitcoin. Then US senators sent a letter to Fidelity on July 26, requesting that this offer be reconsidered. While many organizations decried the high risks of investing in them bitcoin Retiring, Fidelity continues to invest in cryptocurrency.
However, it should be noted that opinions are divided on this retirement plan scheme. In May 2022, Republican Senator Tommy Tuberville introduced the Financial Freedom Act to the US Congress. This would allow US residents to add crypto to their 401(k) savings plan without exposing themselves to regulatory impact.
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