Bill to allow retirement fund investment into crypto to be introduced in US
US Senator Tommy Tuberville presented a new bill which, once passed, would preserve the ability of Americans who are retiring to invest their 401(k) funds as they want, including investing in cryptocurrencies
Tommy Tuberville
Image: Anna Moneymaker /Getty Images via AFP
Senator Tommy Tuberville presented a bill in the US Parliament that will potentially act as a barrier to the government’s attempts to restrict bitcoin (BTC) and other cryptocurrencies as an investment avenue under the 401(k) retirement plans. The bill, once passed, would preserve the ability of the people retiring to invest their 401(k) funds as they want, including investment in cryptocurrencies.
Senator Tuberville will present the Financial Freedom Act of 2022, which contains provisions to counter the Department of Labour’s (DOL) attempts to restrict cryptocurrencies as a choice for 401(k) self-directed retirement plans. The legislation would have guidelines for ensuring that financial institutions and employers don’t face any legal troubles if they offer virtual assets as an investment option under the 401(k) retirement plan.
The press release stated, “The [DOL’s] guidance attempts to bar 401(k) investors from investing in cryptocurrency and undermines the ability of 401(k) plans to offer brokerage windows, which give retirement plan participants the ability to personally control how their assets are invested.”
In March, the DOL had issued a warning for financial service firms that expose their 401(k) participants to digital assets. It cited volatility, uncertain valuations, and a still-evolving regulatory environment as the key concerns behind the warning. The US DOL’s guidance directly threatens employers and investment firms. It states that employers and investment firms allowing individuals using brokerage windows to invest in cryptocurrency could be subjected to a DOL investigation and enforcement actions.
