US lawmakers reintroduce bill to removing roadblocks for crypto investments in retirement accounts

Alabama Senator Tommy Tuberville has reintroduced authorities aiming to let United States 401(k) status plans to see vulnerability to cryptocurrencies.

In a Feb. 15 announcement, Tuberville said the Financial Freedom Act — which helium archetypal introduced to the U.S. Senate successful May 2022 — aimed to reverse argumentation from the Department of Labor directing what benignant of investments were allowed successful 401(k) plans, including crypto. According to the senator, the measure would barroom the DOL from pursuing enforcement actions for individuals “using brokerage windows to put successful cryptocurrency”.

“The national authorities shouldn’t take winners and losers successful the concern game,” said Tuberville. “My measure ensures that everyone who earns a paycheck has the fiscal state to put successful their futures nevertheless they spot fit.”

Tuberville reported that Senators Cynthia Lummis, Rick Scott, and Mike Braun had signed connected arsenic cosponsors of the bill. Lummis said successful a December 2022 interview — pursuing the crypto marketplace clang and the bankruptcies of large firms including FTX, Voyager Digital, and Celsius Network — that she was “very comfortable” with having U.S. investors see Bitcoin (BTC) successful their status accounts.

Politico reported connected Feb. 14 that Florida Representative Byron Donalds planned to present an equivalent measure successful the House of Representatives connected Feb. 17. Donalds and Tuberville, some members of the Republican party, could look absorption from crossed the aisle — Democratic Senator Elizabeth Warren has previously expressed concerns astir Fidelity Investments’ plans to see BTC successful 401(k) accounts.

Related: Almost 50% of Gen Z and Millennials privation crypto successful status funds: Survey

The DOL announcement from March 2022 warned 401(k) relationship holders to “exercise utmost care” erstwhile dealing with investments successful cryptocurrencies, citing the hazard of fraud, theft and nonaccomplishment of funds. The U.S. Securities and Exchange Commission’s Office of Investor Education and Advocacy, the North American Securities Administrators Association, and Financial Industry Regulatory Authority also issued a notice connected Feb. 7, informing that self-directed idiosyncratic status accounts whitethorn see cryptocurrencies arsenic perchance risky investments.