US Treasury Secretary Yellen Warns Crypto Is ‘Very Risky’ — Unsuitable for Most Retirement Savers – Regulation Bitcoin News

U.S. Treasury Secretary Janet Yellen warns crypto is a “very risky investment,” adding that she would not recommend it to most people who are saving for retirement. However, Yellen pointed out that Congress may limit the types of investments permitted in retirement accounts. This includes 401(k), plans.

Janet Yellen: Investing In Cryptocurrencies For Retirement

Hotly debated is whether Americans should still be allowed to save for retirement in cryptocurrency.

U.S. Treasury Secretary Janet Yellen was asked Thursday at an event organized by the New York Times about Fidelity’s announcement to allow bitcoin as an investment option in 401(k) plans.

Yellen replied:

It’s not something that I would recommend to most people who are saving for their retirement … To me it’s very risky investment.

Fidelity’s announcement followed a guidance issued by the Labor Department (DOL) warning 401(k) plan administrators about allowing cryptocurrencies in retirement plans. Fidelity, one of the largest 401k plan administrators.

Ali Khawar, Acting Assistant Secretary of the DOL’s Employee Benefits Security Administration, said the Labor Department has “grave concerns with what Fidelity has done.” He stressed, “cryptocurrencies can present serious risks to retirement savings.”

Thursday was also noted by Treasury Secretary Yellen that Congress can regulate which assets may be included in retirement plans, such as 401 (k). Yellen provided clarification on the question of whether Congress should act.

I’m not saying I recommend it, but that to my mind would be a reasonable thing.

The Labor Department’s efforts to restrict Americans from putting crypto in retirement accounts have upset some lawmakers. U.S. Senator Tommy Tuberville (R-AL) introduced the Financial Freedom Act to prohibit the DOL “from issuing a regulation or guidance that limits the type of investments that self-directed 401(k) account investors can choose through a brokerage window.” Furthermore, the Labor Department has been sued over its crypto guidance.

Do you have any thoughts about Janet Yellen’s remarks? 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.