The Labor Department is scheduled to meet with Fidelity to express concerns.Read MoreFeedzy
Fidelity Investment’s plan to allow for the inclusion of bitcoin in its operated 401(k) accounts is facing headwinds from the U.S. Labor Department, which regulates company-sponsored retirement plans, according to a report from The Wall Street Journal.
“We have grave concerns with what Fidelity has done,” Ali Khawar, acting assistant secretary of the Employee Benefits Security Administration, told the Wall Street Journal.
Khawar highlighted the speculative nature of cryptocurrency and the hype around the fear of missing out as reasons his department is concerned about the move.
Fidelity announced earlier in the week that it plans to offer bitcoin as an investment option for its 401(k) managed accounts.
The financial giant manages retirement accounts for 23,000 companies in the U.S.
Fidelity caps bitcoin holdings at 20% of the account’s value.
Khawar has said that crypto has “intriguing use cases” but needs “maturing” before it’s suitable to be placed into a retirement savings account.
“For the average American, the need for retirement savings in their old age is significant,” he is quoted as saying. “We are not talking about millionaires and billionaires that have a ton of other assets to draw down.”
Fidelity said that its bitcoin offering represents a “continued commitment to evolving and broadening its digital assets offerings amidst steadily growing demand for digital assets across investor segments.”
DISCLOSURE
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Bitcoin's (BTC) market cap is consistently in excess of 50% of the size of the…
Post ContentRead MoreCoinDesk: Bitcoin, Ethereum, Crypto News and Price Data[#item_full_content]
In a recent interview with Fox Business, Michael Saylor, co-founder and chairman of MicroStrategy, expressed…
Follow Frank on X. (Author's note: In this Take, I offer an interpretation of recent events in…
Wow, we finally hit $100,000 bitcoin. What a time to be alive! A cypherpunk experiment…
November 2024 will be remembered as one of the most significant months in Bitcoin's history.…