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US Department of Labor at Odds with Fidelity’s Bitcoin Pension Plan

By DailyCoin | DailyCoin | 2 May 2022


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  • A senior agency official said he raised concerns about such plans given the volatility and risks that cryptocurrencies pose.
  • The pension fund management company argues that this step only seeks to expand the supply of digital assets available and constantly growing.

 

The Department of Labor takes issue with Fidelity Investments’ pension plan, which allows investors to hold Bitcoin in their 401(k) accounts. Officials consider these kinds of offers to pose a huge security risk to American retirees.

"We have grave concerns with what Fidelity has done," Acting Assistant Secretary of the Employee Benefits Security Administration Ali Khawar told The Wall Street Journal.

We are not talking about millionaires and billionaires

Khawar, whose department is charged with regulating corporate retirement plans, added that "For the average American, the need for retirement savings in their old age is significant." He further emphasized that "We are not talking about millionaires and billionaires that have a ton of other assets to draw down."
Both the senior official and his department regard Bitcoin as a speculative currency. Khawar further noted that there is "a lot of hype around ‘You have to get in now because you will be left behind otherwise.'"

During the interview, Khawar revealed that he received the notification of the Fidelity plan just one day before the company announced its offer to allow the more than 23,000 companies that use its 401(k) services to have the option of saving in Bitcoin for their employees.

The Adoption of Bitcoin Is Popular

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DailyCoin is an online media outlet, with a focus to cover news, opinions, trends and helpful articles on Fintech, digital assets, blockchain technology and other related technologies. Visit us: DailyCoin.com


DailyCoin
DailyCoin

DailyCoin is an online media outlet, with a focus to cover news, opinions, trends and helpful articles on Fintech, digital assets, blockchain technology and other related technologies.

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