Fidelity’s Bitcoin 401(k) Offering Risks Retirement Security of Americans, Says Labor Department Official – Finance Bitcoin News

The U.S. Labor Department has “grave concerns” about Fidelity Investments allowing investors to put bitcoin into their 401(k) accounts for retirement savings. An official of the Labor Department said it risks the retirement security of Americans, stressing that “cryptocurrencies can present serious risks to retirement savings.”

U.S. Labor Department’s ‘Grave Concerns’ Over Fidelity’s Bitcoin 401(k) Offering

The U.S. Labor Department is deeply concerned about Fidelity Investments’ new offering to allow investors to put up to 20% of their 401(k) savings and contributions into bitcoin (BTC). A 401 (k) is an American workplace savings plan that offers significant tax benefits as an incentive to retire early.

Ali Khawar, Acting Assistant Secretary of the Labor Department’s Employee Benefits Security Administration, said in an interview with The Wall Street Journal Friday:

Fidelity’s actions raise serious concerns.

Khawar said that the Labor Department considers Fidelity permitting savers to place bitcoin in their 401(k), a threat to Americans’ retirement security.

According to the official, cryptocurrency is speculative. There is “a lot of hype around ‘You have to get in now because you will be left behind otherwise,’” he opined.

Khawar wrote a blog post on the Department of Labor’s website in March raising concerns about retirement plans investing in cryptocurrencies. He detailed:

The U.S. Department of Labor has serious concerns about plans’ decisions to expose participants to direct investments in cryptocurrencies or related products, such as NFTs, coins, and crypto assets.

He explained that “cryptocurrencies can present serious risks to retirement savings,” citing valuation challenges, price volatility, and the evolving regulatory landscape.

Is the U.S. Department of Labor concerned that Fidelity allows investors to deposit bitcoin into their retirement accounts (401(k)). Comment below.

Kevin Helms

Kevin is a graduate of Austrian Economics. He discovered Bitcoin in 2011, and has been an advocate ever since. His main interests are in Bitcoin security, open source systems, network effects, cryptography, and intersections between economics, cryptography, and Cryptography.