Dick Durbin Joins US Senators in Critiquing Fidelity’s 401(k) Bitcoin Plan

• Three renowned Senators Dick Durbin, Elizabeth, and Tina Smith came together for critiquing Fidelity’s 401(k) retirement scheme.  

Senator Dick Durbin of the United States has joined the Labour Department and colleagues Elizabeth Warren and Tina Smith in raising the issue of a fidelity investment plan offering BTC (bitcoin) as an investment option for its 401 (K) managed accounts.

Abigail Johnson, CEO of Fidelity Investments, is addressed with a letter that criticizes the decision taken by the investment company to offer workers the opportunity to invest in such an untested, highly volatile digital asset like Bitcoins.

Fidelity Investments, a financial services provider based in the United States, announced in the first quarter of 2022 that it would allow investors to invest BTC into a 401(k) retirement scheme until the end of 2022, with a cap of 20% BTC held on an account value.

Elizabeth Warren, in alliance with Tina Smith, has signed a similar letter questioning fidelity investment about the ” rightness” of its plan.

The Labour Department has raised its concern in both letters, seeking information about the rightness of the token as a store of value. “We have grave concerns with what Fidelity has done.”

In an interview with The Wall Street Journal in April 2022, Ali Khawar,(assistant secretary) of the Employee Benefits Security Administration, mentioned that both the letters replication issue raised by the Labour Department about the rightness of digital assets as a store of value as well as ” We have grave concerns with what Fidelity has done.”

During a comment session, the official spokesperson of the company mentioned that Fidelity Investment is “ proud of the Digital Assets Account as a responsible solution to meet the demands of mainstream interest.” And this fall, the company is planning to launch its first plan.

The spokesperson mentioned that Fidelity Investments is looking forward to working directly with policymakers to answer their questions.

Also Read: Ifancythat – shop your favorite retail, travel, and leisure brands with crypto

The retirement account of Fidelity Investments consists of a large share of the retirement fund market. During the first quarter of 2022, the account held around $2.4 trillion in assets in 401(k), which is around three-quarters of the current market.

The letter comes into the limelight at a time when Congress is showing its keen interest in cryptocurrencies. And as of July 27th, 2022, three different hearings on different points of the crypto industry. 

These three hearings were under the mentorship of three different committees, and they are the Senate Judiciary Committee, the Senate Banking Committee, and the House Financial Service Committee.

Earlier, Dick Durbin appealed to USS regulators to “Learn the truth” about the crypto sector, and Durbin also blamed crypto-mining operations and posted on Twitter that “Families and businesses in America will have to pay the price of crypto mining happening.”

Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.

Latest posts by Steve Anderrson (see all)