U.S. Two Senators Demand Withdrawal of Proposed Rule Allowing Crypto in 401(k) Plans

U.S. Senators Bernie Sanders and Elizabeth Warren, along with Representative Robert Scott, sent a letter to the U.S. Department of Labor, demanding the withdrawal of 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 fiduciaries offering alternative investments, weakening the investor protections long enjoyed by retirement savers, and could potentially encourage the allocation of riskier, more structurally complex, and higher-cost investment products.

Reportedly, the U.S. Department of Labor unveiled the proposed rule in March of this year, providing a guiding framework for 401(k) plan managers to include alternative assets such as private equity, real estate, and digital assets in their investment portfolios. (The Block)