US House of Representatives Wants a Screening of Cryptocurrency Investment in 401(K) Accounts

The US House of Representatives has asked the government to look into adding crypto to 401(k) retirement plans. He cites volatility and lack of oversight as concerns for inclusion.

The Chamber seeks to investigate retirement accounts that include cryptocurrencies as part of their portfolio. The Chamber sent a letter to the US Government Accountability Office (GAO), saying there were concerns about the risks associated with cryptocurrencies, namely volatility and oversight.

He also wants the GAO to examine how crypto investment options are executed, and this refers to valuation, types and degrees of fees, and safeguards. Lastly, ask for a review of cryptocurrency oversight in 401k plans.

The letter was sent by the Committee on Ways and Means. President Richard Neal spoke about the risk and how it could affect participants and sponsors.

“Concerns have been raised about the risks to retirement security for older Americans when using retirement accounts to invest in cryptocurrencies due to their volatility and limited oversight…the Department of Labor warned that DC plan sponsors should exercise extreme caution.” before considering adding a cryptocurrency investment option to your plan, given the risks and complications these assets pose to both participants and sponsors,” he said.

Bitcoin 401(k) Plans Come True

The Chamber is likely to have retirement plan providers such as Fidelity in mind, as the latter announced that it would offer the option of including cryptocurrency in retirement accounts. It offers up to 20% of your portfolio to include crypto.

There have been several other political figures and companies working on the idea of ​​allowing bitcoin in 401k plans. Mayor Francis Suarez of Miami said he was interested in letting this happen, though there has been no update since.

However, the US House of Representatives has introduced a bill to allow Bitcoin to enter 401k plans. The bill has received some support from Republicans, though it’s unclear if it will actually pass. If so, it would be another big milestone for bitcoin and ease some concerns about the recent market crash.

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