Democrats oppose the Labor Department's proposal to introduce cryptocurrencies into 401k plans

Odaily News: U.S. Congressional Democrats have strongly opposed a proposal by the Labor Department that would allow 401k retirement plans to invest in cryptocurrencies, private credit, and private equity assets, warning that the rule would expose approximately $14.2 trillion in 401k retirement savings to high-risk and complex assets.

Senators Bernie Sanders and Elizabeth Warren, along with Representative Bobby Scott, stated in a joint letter that high-risk assets are highly volatile. For example, Trump’s MEME token, which peaked at over $75 per coin in January 2025, has now dropped to $2. The letter also highlighted that the proposal could lead to higher fees for workers and weaken long-term returns. In response, the Trump administration stated that the new rule would provide workers with more diverse investment options. (The Guardian)