Fidelity Investments, one of the largest retirement savings plan providers in the United States, wants to offer employees in the United States the possibility of investing part of their private retirement plans in Bitcoin (DER AKTIONÄR reported) . While crypto fans cheer, criticism is clear from regulators.
Ali Khawar, assistant secretary of the Employee Benefits Security Administration at the US Department of Labor, said in an interview with the wall street journal (WSJ) “worst fears” about Fidelity’s plans. If the company gets its way, employees should be able to invest up to 20% of their private pension in Bitcoin under so-called 401(k) plans as early as this summer.
As early as March, the ministry criticized a possible openness of pension savings plan providers to crypto investments and criticized among other things the enormous volatility and the lack of generally accepted evaluation criteria for Bitcoin and Co.
Khawar has now renewed those concerns, noting that savers can now jump on the bandwagon simply out of fear of missing out – without fully understanding the risks.
“For the average American, the need for financial provision in old age is significant,” Khawar said. It’s not about millionaires and billionaires who can then “skim tons of other assets”.
No ban but…
According to Khawar, his authority does not currently want a blanket ban on crypto investments under 401(k) plans WSJ. However, there would be a discussion with Fidelity representatives soon on the mentioned points of contention.
According to the March action recommendation, companies that offer cryptocurrencies in their pension plans should also be prepared for an investigation “into how they can reconcile their actions with their duties of care and loyalty in view of the risks”.
Notice of conflict of interest:
The CEO and majority owner of the publisher Börsenmedien AG, Mr. Bernd Förtsch, has taken direct and indirect positions in the following financial instruments mentioned in the publication or related derivatives which benefit from any price movements resulting from the publication: Bitcoin.
The editor-in-chief of the publisher Börsenmedien AG, Mr. Leon Müller, has taken direct and indirect positions in the following financial instruments mentioned in the publication or related derivatives which may benefit from any price developments resulting from the publication: Bitcoin.
The author holds direct positions in the following financial instruments mentioned in the publication or related derivatives that may benefit from any price movements resulting from the publication: Bitcoin.
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