Paul Atkins, chair of the US Securities and Exchange Commission (SEC), expressed support for including cryptocurrency in 401(k) plans for Americans. But he stressed the need of appropriate disclosure.
Atkins left the possibility of incorporating cryptocurrency into 401(k) plans open. He spoke in an interview that was published on Friday by Bloomberg. However, he stressed the need of informing people about the dangers of such an investment.
Atkins replied when asked about the likely inclusion of crypto into 401(k) plans that “Disclosure is key and that people need to know what they are getting into. Still, he added that he looks “forward to whatever may come out from the president.”
May transform retirement investing
Cryptocurrencies and other non-traditional assets might soon be eligible for investment in 401(k) plans. This is according to an executive order that US President Donald Trump is expected to sign. Reintroducing a measure he had previously supported in May 2022, Alabama Senator Tommy Tuberville announced in April that he would do so in order to reduce rules on the kinds of investments that 401(k) retirement plan trustees may make.
Workers in the United States may put some of their paycheck into tax-deferred investment accounts via a program called a 401(k). And their employers can match their contributions up to a certain point.
Also in April, the $5.9 trillion asset manager Fidelity unveiled retirement accounts. That would make crypto investments almost fee-free for Americans. Bitcoin (BTC), Ether (ETH), and Litecoin (LTC) may be added to the three new accounts. Which include a tax-deferred conventional IRA and two Roth IRAs, one of which is a rollover.
The US Labor Department reversed its earlier recommendations at the end of May that restricted the use of Bitcoin in 401(k) plans. Which had been issued under the administration of former President Joe Biden.
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Source: https://thenewscrypto.com/us-sec-chair-supports-crypto-in-401k-plans-but-with-caution/