According to a Congressional filing, three Republican members of Congress introduced the Retirement Savings Modernization Act, which would allow investment managers to include cryptocurrency and Bitcoin in their 401(k) plans.
The proposed legislation alters the Employee Retirement Income Security Act of 1974 to add classes to the sorts of assets that fiduciaries may provide.
A new @SenToomey & @SenatorTimScott bill aims to open workplace retirement plans to a bigger range of investments, clarifying plan managers can mix in options like private equity, real estate & crypto.
They’re looking to add it to a year-end tax bill. 🔒: https://t.co/Bx6KnvMR4o
— Laura Weiss (@LauraEWeiss16) September 29, 2022
The paper goes on to describe a “covered investment” and specifies “digital assets” in addition to the other regular assets that may be handled under a standard 401(k) savings plan.
Senator Pat Toomey (R-Pa.) of the Senate Banking Committee, House of Representatives member Peter Meijer and Senator Tim Scott (R-S.C.), are among the bill’s congressional backers.
— ₿ona D€a (@BonaDeaCrypto) September 30, 2022
Labor Department is not very happy with the decision
Despite the Labor Department’s warning, Fidelity, a major 401(k) plan administrator, said in April that cryptocurrency would be available as an investment choice in its new 401(k) plans. The Labor Department was concerned by the banking giant’s choice. Senator Elizabeth Warren (D-MA) is likewise concerned and has demanded explanations from Fidelity about its decision to accept bitcoin in 401(k) plans.
In May, a U.S. senator filed legislation preventing the Labor Department from meddling with retirement account investments. U.S. Treasury Secretary Janet Yellen said in June that cryptocurrency is “extremely hazardous,” adding that it is inappropriate for most retirement investors.