In a letter to Abigail Johnson, CEO of Fidelity, Senators Elizabeth Warren of Massachusetts and Tina Smith of Minnesota expressed great concern about the decision to add Bitcoin to pension funds.
US senators against Fidelity’s Bitcoin pension funds
Just a few days after the announcement by Fidelity Investment group that it will openly add Bitcoin to the investment plans of its pension plans, the decision is already creating turmoil in the American political world, which has always been very critical of the world of cryptocurrencies.
One of the American politicians most critical of the crypto sector is undoubtedly Senator Elizabeth Warren, who has already made several bills in recent months to regulate and limit their spread in the United States.
The Democratic senator and her political colleague Tina Smith of Minnesota have raised questions about the recent decision by the investment company Fidelity to allow investors to include BTC in their pension plans. In a letter to the company’s CEO, Abigal Johnson, they argue that cryptocurrencies could be too risky an investment for retirement savers.
In the letter dated Wednesday, the two Democratic senators also said that Fidelity might have potential conflicts of interest in its decision to open up cryptocurrency investments for its pension funds.
Possible conflicts of interest on the part of Fidelity
The letter asked for information on the extent to which those potential conflicts might have influenced the decision made. The letter argues that the company has long been involved in investments related to cryptocurrencies and Bitcoin mining.
In their letter, the two senators ask the company to reconsider such a risky decision for the savings of its customers, considering that until now the response would have been very limited.
The two senators write that:
“Despite a lack of demand for this option — only 2% of employers expressed interest in adding cryptocurrency to their 401(k) menu – Fidelity has decided to move full speed ahead with supporting Bitcoin investments.”
The letter has so far not received a response from the company’s top management, but it seems very unlikely that Fidelity, which seems to have been betting on cryptocurrencies for some time now, will revisit its decision.
Source: https://en.cryptonomist.ch/2022/05/05/fidelity-bitcoin-pension-funds-worry-senators/