US-based retirement planning provider Fidelity must address the risks and potential conflicts of interest related to its plan to allow bitcoin investments in 401(k) retirement accounts, according to Senators Elizabeth Warren of Massachusetts and Tina Smith of Minnesota, who The answer has been sought before May 18, the heavyweight of financial services. Fidelity announced last week that it would allow people to dedicate 20 percent of their retirement planning to bitcoin by the end of the year.
Senator Elizabeth Warren of Massachusetts and Senator Tina Smith of Minnesota sent a letter to Fidelity’s chief executive officer, Abigail Johnson, earlier this week asking why, among other things, it should address earlier concerns by the Labor Department on the issue of including cryptocurrencies. But why didn’t you pay attention? 401(k) retirement accounts.
“Why Fidelity Ignored DOL’s ‘Serious Concerns’ About the Wiseness of a Fiduciary’s Decision to Expose 401(k) Plan Participants to Direct Investments” cryptocurrency?” wrote the senators.
Fidelity’s push to expand Investing in a 401(k) is said to have been based on a growing demand from employees. Despite the firm’s clarification that it would not charge any fees for the service, senators still sought to know whether the proposed customers would need to worry about any charges.
In an earlier announcement, Fidelity said it would allow approximately 20% of a particular client’s portfolio to be invested in digital currencies, however, popular demand claims have been falsified primarily by senators, who wrote, Despite the lack of this option — only 2% of employers expressed interest in adding cryptocurrency to their 401(k) menus — fidelity to truth We have decided to move forward at full speed with supporting bitcoin investments.”
Allegiance did not respond to specific issues raised by the senators. but in an email To CNN Business, a spokesperson said the company would respond directly to them.
“As a Massachusetts-based company with a 75-plus-year history of acting in the best interest of our customers, we all work with policymakers to responsibly provide access with appropriate consumer safety and educational guidance. Look forward to continuing the dialogue. As plan sponsors they look to offer this innovative product,” Fidelity wrote.