{"id":29523,"date":"2022-06-10T04:14:34","date_gmt":"2022-06-10T08:14:34","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=29523"},"modified":"2022-06-10T04:14:50","modified_gmt":"2022-06-10T08:14:50","slug":"yellen-doubts-crypto-potential-in-401k-retirement-savings","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/yellen-doubts-crypto-potential-in-401k-retirement-savings\/","title":{"rendered":"Yellen Doubts Crypto Potential In 401(k) Retirement Savings"},"content":{"rendered":"\n
Most people would not want to hear from the head of the Treasury that they should invest their 401(k) retirement savings into cryptocurrency<\/a>.<\/h5>\n\n\n\n
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Janet Yellen, Secretary of the United States Treasury, weighed in on the inclusion of cryptocurrencies in 401(k) retirement savings plans, calling them a high-risk investment that should be regulated by Congress.<\/p>\n\n\n\n

On June 9, at a New York Times event in Washington, Yellen expressed\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a> her thoughts on Fidelity Investments' pioneering attempt to include cryptocurrency<\/use><\/svg><\/span><\/a> in retirement plans:<\/p>\n\n\n\n

“I wouldn't recommend it to most people who are saving for their retirement.” It appears to me to be a high-risk investment.”<\/p>\n\n\n\n

The Department of Labor, as well as Senators Elizabeth Warren, Tommy Tuberville, and Cynthia Lummis, took part in the discussion about digital currencies in 401(k) plans.<\/p>\n\n\n\n

Yellen even suggested that Congress could limit the types of assets that can be included in retirement plans:<\/p>\n\n\n\n

\u201cI\u2019m not saying I recommend it, but that to my mind would be a reasonable thing.\u201d<\/p><\/blockquote><\/figure>\n\n\n\n

The last statement is significant in light of the legislative uncertainty that has surrounded the topic of cryptocurrency as a retirement investment since its inception. The Employee Retirement Income Security Act of 1974 governs 401(k) investments. It does not specify<\/use><\/svg><\/span><\/a> which asset classes are permitted or prohibited in a 401(k), but it requires fiduciaries to “exercise the care, skill, prudence, and diligence that a prudent person would exercise.”<\/p>\n\n\n\n

Fidelity announced in April that 401(k) retirement savings account holders would be able to invest directly in Bitcoin (BTC<\/a>). The US Department of Labor (DOL) responded with a compliance report, threatening legal action, while senators Elizabeth Warren of Massachusetts and Tina Smith of Minnesota asked the firm to provide answers on how they plan to address the DOL's risks.<\/p>\n\n\n\n

Meanwhile, Alabama Senator Tommy Tuberville introduced the “Financial Freedom Act,” which would allow investors to add cryptocurrency to their 401(k) retirement savings plan, and Wyoming Senator Cynthia Lummis teased the legalization of cryptocurrency in 401(k)s as part of her long-awaited crypto bill.<\/p>\n","protected":false},"excerpt":{"rendered":"

Most people would not want to hear from the head of the Treasury that they should invest their 401(k) retirement savings into cryptocurrency. Janet Yellen, Secretary of the United States Treasury, weighed in on the inclusion of cryptocurrencies in 401(k) retirement savings plans, calling them a high-risk investment that should be regulated by Congress. On […]<\/p>\n","protected":false},"author":33,"featured_media":29526,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21,26],"tags":[],"class_list":["post-29523","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","category-cryptocurrencies"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2022\/06\/Cryptocurrency-trading-1.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/29523","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/33"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=29523"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/29523\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/29526"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=29523"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=29523"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=29523"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}