2 years ago
New York Attorney General Letitia James has urged Congress to walk a instrumentality prohibiting crypto investments successful status accounts. “Hardworking Americans should not person to interest astir their status savings being wiped retired owed to risky bets connected unstable assets similar cryptocurrencies,” she stressed.
NYAG Letitia James Urges Congress to Prohibit Crypto Investments successful Retirement Accounts
New York Attorney General Letitia James announced Tuesday that she has “urged legislature leaders to follow authorities that would prohibit investing status funds successful integer assets, specified arsenic cryptocurrencies, integer coins, and integer tokens.”
In the missive she sent to Sen. Ron Wyden (D-OR), Sen. Mike Crapo (R-ID), Rep. Richard Neal (D-MA), and Rep. Kevin Brady (R-TX) Tuesday, James wrote:
On behalf of the radical of the authorities of New York, I impulse Congress to walk authorities to designate integer assets — e.g., cryptocurrencies, integer coins, and integer tokens — arsenic assets that cannot beryllium purchased utilizing funds successful Individual Retirement Accounts (IRAs) and defined publication plans, specified arsenic 401(k) and 457 plans.
James provided a fewer reasons wherefore cryptocurrencies are excessively risky to beryllium allowed successful status plans. In summation to having nary intrinsic value, she said they are highly volatile and “often an instrumentality for fraud and crime.”
The lawyer wide besides referenced the terra clang and FTX meltdown, some of which were followed by crypto marketplace sell-offs. Crypto speech FTX filed for bankruptcy connected Nov. 11 amid investigations that it mishandled lawsuit funds.
Citing “recent crypto marketplace crashes and different marketplace turbulence,” Attorney General James said:
Investing Americans’ hard-earned status funds successful crashing cryptocurrencies could hitch distant a lifetime’s worthy of hard work.
“Over and implicit again, we person seen the dangers and pitfalls of cryptocurrencies and the chaotic swings successful these funds. Hardworking Americans should not person to interest astir their status savings being wiped retired owed to risky bets connected unstable assets similar cryptocurrencies,” the lawyer wide stressed.
James besides wants lawmakers to cull 2 bills that would let crypto investments successful status accounts. She wrote:
I impulse Congress to cull the precocious projected Retirement Savings Modernization Act … and the Financial Freedom Act of 2022.
The Retirement Savings Modernization Act would “expressly let 401(k) program fiduciaries to marque integer assets an concern option,” James explained.
The Financial Freedom Act of 2022 would “prohibit the Secretary of Labor from constraining oregon prohibiting the scope of investments offered done a self-directed brokerage window, i.e., the Secretary of Labor would not beryllium capable to prohibit investments successful integer assets,” the NY lawyer wide emphasized.
Fidelity Investments, the largest 401(k) head by assets, began offering bitcoin investments successful status accounts this fall. This has troubled the U.S. Department of Labor. Treasury Secretary Janet Yellen has besides warned that crypto is “very risky,” noting that it is unsuitable for astir status savers. This week, 3 U.S. senators sent a letter to Fidelity CEO Abigail Johnson, urging her steadfast to halt offering bitcoin arsenic an enactment for status accounts.
What bash you deliberation astir New York Attorney General Letitia James urging Congress to prohibit crypto investments successful status accounts? Let america cognize successful the comments conception below.
Kevin Helms
A pupil of Austrian Economics, Kevin recovered Bitcoin successful 2011 and has been an evangelist ever since. His interests prevarication successful Bitcoin security, open-source systems, web effects and the intersection betwixt economics and cryptography.
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