Democratic senators chide Fidelity Investments for BTC-exposed retirement funds

Three senators from the United States have written to Fidelity Investments CEO Abigail Johnson to demand an explanation for Fidelity Investments’ decision to include Bitcoin-exposed funds within its 401(k), retirement plans. They wrote that they found the decision “extremely troubling.”

Tina Smith, Elizabeth Warren, and Dick Durbin were the Democrats who sent their letters Tuesday. The letter is approximately one page long and contains minimal statistics, but many rhetorical flourishes, strings of adjectives, and general discussion about Americans’ retirement savings habits. For example, Americans may have invested their hard-earned money in retirement funds. However, they are not exposed to “cryptocurrency casinos.”

“When saving for retirement can be a daunting task for many Americans, Fidelity would allow those who have the ability to save to be exposed at a highly volatile, untested asset like Bitcoin.”

The letter does not call for action, other than “We look forward your response.”

U.S. Senators Upset That Fidelity Investments Offers a Bitcoin 401(k) Retirement Option – Senators Warren, Durbin, and Smith
No bullshit bitcoin (@nobsbitcoin July 28, 2022)

Senators objected to Fidelity Investments’ March introduction of funds. Warren, who is the representative of Massachusetts, where Fidelity Investments was based, joined Smith to send a detailed, footnoted, objection to the inclusion Bitcoin (BTC), in retirement plans. The letter ended with a list and deadline of two weeks for a reply.

Related: Survey: More Than a quarter of U.S.-born millennials intend to use crypto to help fund their retirement

Fidelity Investments’ actions were criticized by the government. Before Fidelity Investments’ embrace of cryptoexposed retirement funds, the Department of Labor published a compliance report that promised an “investigative programme” for retirement plans that included crypto. The department was eventually sued over the compliance report.

Tommy Tuberville, a Republican Alabama Senator, introduced the Financial Freedom Act at the start of May to protect investors’ rights to include crypto in their retirement accounts.

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Eileen Wilson

Eileen Wilson –Technology and Energy My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.

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