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

Odaily News: U.S. Senators Bernie Sanders and Elizabeth Warren, along with Representative Robert Scott, have 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, undermining the investor protections long enjoyed by retirement savers. It could also encourage the allocation of higher-risk, more complex, and more costly investment products.

According to reports, the U.S. Department of Labor released the proposed rule in March this year, providing a guiding framework for 401(k) plan managers to incorporate alternative assets, including private equity, real estate, and digital assets, into investment portfolios. (The Block)