US Congress Members Resubmit Legislation to Allow Crypto Investments in Retirement Accounts

The growth of crypto and its influence on the traders has been massive! Through the various bear and bull run, crypto asset has gained a large momentum that has helped this new asset class be considered to have a portfolio section dedicated to it by many investors and trader alike. With the massive adoption of crypto and the global journey to Web3, Senator Tommy Tuberville of Alabama has reintroduced legislation with the aim for the United States 401(k) retirement plans to include exposure to crypto assets.

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In an announcement, that was released on February 15, 2023, Tuberville reintroduced the Financial Freedom Act, which he had previously introduced to the U.S. Senate back in May 2022. He reintroduced the announcement with the aim to reverse the policy from the Department of Labor that had previously shared their thoughts in directing what type of investments were to be allowed in 401(k) plans. The announcement had also included crypto.

As per the announcement released by the Senator, his suggestive bill will be barring the DOL from pursuing any enforcement actions for individuals “using brokerage windows to invest in crypto.”

Tuberville said, “The federal government shouldn’t choose winners and losers in the investment game. My bill ensures that everyone who earns a paycheck has the financial freedom to invest in their futures however they see fit.”

Sen. Tuberville (R) plans to reintroduce the “Financial Freedoms Act”

It aims to stop the Dep of Labor from restricting individuals from investing their 401k’s into crypto

“Every American should have the right to invest their retirement money how they see fit”$BTC up 8% today pic.twitter.com/e9saPsj5j6

— Nancy Pelosi Stock Tracker ♟ (@PelosiTracker_) February 15, 2023

Tuberville also made it public that Senators Cynthia Lummis, Rick Scott and Mike Braun had signed on as cosponsors of the bill. Lummis, who is just one of the few open crypto supporter, in a December 2022 interview said that she was “very comfortable” with having U.S. investors including Bitcoin in their retirement accounts. This interview took place following the crypto market crash of 2022, that followed the bankruptcies of major firms including FTX, Voyager Digital and Celsius Network.

Lummis had said, “I personally believe that because there are only going to be 21 million Bitcoin that are mined, that Bitcoin will go up, a personal belief, just based on its scarcity.”

However, Democratic Senator Elizabeth Warren of Massachusetts and Tina Smith of Minnesota had previously expressed their concerns when Fidelity, a financial firm, decided to give users permission to add BTC to its 401(k) investment plan; in a letter to Fidelity CEO Abigail Johnson; back in May of last year.

Additional Read: Guide To Crypto Tax In India

This came after the DOL’s notice from March 2022, which warned 401(k) account holders to “exercise extreme care” when dealing with investments in crypto assets by citing the risk of fraud, theft and loss of funds. The announcement also stated, “Based on these and other concerns, EBSA expects to conduct an investigative program aimed at plans that offer participant investments in crypto and related products, and to take appropriate action to protect the interests of plan participants and beneficiaries with respect to these investments.”

Source: Cointelegraph