Two U.S. senators have called for the withdrawal of a proposed rule allowing cryptocurrency assets to be included in 401(k) plans

Odaily reports that U.S. Senators Bernie Sanders and Elizabeth Warren, along with Representative Robert Scott, have sent a letter to the U.S. Department of Labor urging it to withdraw a proposed rule that would allow 401(k) retirement plans to include alternative assets such as cryptocurrencies.

In the letter, the lawmakers stated that the rule would establish a so-called "safe harbor" for trustees offering alternative investments, weakening the investor protections that retirement savers have long enjoyed. It could also encourage the allocation of riskier, more complex, and higher-cost investment products.

It is reported that the U.S. Department of Labor published the proposed rule in March of this year, providing a guiding framework for 401(k) plan administrators to incorporate alternative assets—including private equity, real estate, and digital assets—into their investment portfolios. (The Block)