- Representative Byron Donalds has introduced a bill focused on including Bitcoin in the 401(k) retirement plan.
- But the regulatory guidance released by the US Department of Labour seems to oppose such a decision.
- Earlier, Fidelity Investments highlighted its decision to include Bitcoin (BTC) in the 401(k) retirement plan.
Representative Byron Donalds, a member of the US House of Representatives, has very recently introduced a bill that is focused on ensuring that the crowned cryptocurrency Bitcoin (BTC) is allowed in the 401(k) retirement plan.
This is a companion bill to the Senate’s Financial Freedom Act of 2022. The former bill had similar language and was introduced on May 5 by Senator Tommy Tuberville.
These bills came as a response to the regulatory guidance released by the US Department of Labour in the month of March. And it suggests that investment firms do not include digital assets in the 401(k) retirement plans.
Donandls highlights the Department of Labour’s comments as a far-reaching and a sweeping endeavour to centralize power in Washington. And that the guidance infringes on the founding principles of economic liberty and free markets.
He further highlights that the bill he introduced has gained considerable support from members of House off Represeattives comprising Representatives Tom Emmer, Warren Davidson, Young Kim, and David Schweikert.
In Fact, the crypto sphere also supports the Financial Freedom act. The Chamber of Digital Commerce and the Blockchain Association are also quoted in Donalds’ statement.
Whatever would be the end result of the Financial Freedom Act, it would have certain consequences for Fidelity investments. The firm announced that it plans to include Bitcoin (BTC) in the 401(k) retirement plans earlier in the year.
In mid-April, Fidelity also called out the Department of Labour as it expressed its opposition. Fidelity expressed concerns about the Department’s rulemaking. And apparently, it didn’t stop Fidelity from moving forward with its plans. Because in late April, it announced its Workplace Digital Assets Account.
Michael Saylor’s MicroStrategy, the top publicly-traded company to hold the largest amount of Bitcoin (BTC), also recently announced its plans to enable the employees to retire on Bitcoin through Fidelity’s Bitcoin 401(k) program.
It is indeed true that the asset class has made a significant position in the financial world. But still, worldwide skepticisms are hovering around them. And it is to look forward to whether these bills would get approval.
Source: https://www.thecoinrepublic.com/2022/05/21/us-house-of-representatives-member-introduces-bill-to-include-bitcoin-in-401k-plans/