October 3, 2022
Chicago 12, Melborne City, USA
Finance

Warren questions Fidelity’s ‘risky and speculative’ plan to offer bitcoin in 401(k)s

[ad_1]

Sen. Elizabeth Warren expressed concern about Fidelity Investment’s plans to include Bitcoin in customers’ 401 (k) accounts, calling it “a risky and speculative gamble.”

Fidelity CEO Abigail Johnson, Warren, D-Mas, and co-author Sen. Tina Smith, in a letter to D-Min on Wednesday, expressed concern about the potential conflict of interest – fidelity began mining bitcoin in 2017 – and why the company questioned Labor since March. The department ignored a statement that raised “serious concerns” about the disclosure of 401 (k) accounts in cryptocurrency. Refers to “significant risks of fraud, theft and loss.”

“Investing in cryptocurrency is a risky and speculative gamble, and we’re concerned that fidelity will take these risks with the retirement savings of millions of Americans.”


– Sense. Elizabeth Warren and Tina Smith

Noting the extreme volatility of Bitcoin, which they said could lead to a “surge” of a handful of powerful influencers – notably Elon Musk – the senators asked Fidelity: “What are the risks of certain volatility and losses? By Bitcoin, and how loyalty Deal with the risks? “

More: Feedback: I am a financial advisor, and I would discourage you from keeping Bitcoin on your 401 (k).

They wanted to know in detail how Fidelity would deal with the risk of Fidelity and theft if it invested in Bitcoin, and questioned Fidelity’s fiduciary duties.

“How did the company deal with its own conflict of interest when Fidelity decided to allow the sale of Bitcoin on a retirement account, provided that the company is now both a Bitcoin miner and a Bitcoin operator?” They asked.

See also: Elizabeth Warren told the Senate at the bank hearing: “They are still pressuring families with overdraft fees.”

In a statement to the media on Thursday, Fidelity responded: “As a Massachusetts-based company with a proven 75-year history of doing what is in the best interests of our customers, we look forward to continuing our respectful dialogue with policymakers.” Provide responsible access to the plan sponsors responsibly with all appropriate consumer protection and educational guidelines as they consider offering this innovative product. In line with our ongoing dialogue with regulators and policy makers, we will respond directly. “

Loyalty announced last week that it wants to allow customers to add Bitcoin to their 401 (k) account by the end of this year, the first major retirement-planning company to do so. Loyalty said it would limit Bitcoin allocations to 20%, although a response from the Labor Department raised its “serious concern” that the maximum amount would be reduced. Loyalty says it will initially only offer bitcoin investments, but will expand to offer other cryptocurrencies in the future.

Bitcoin price BTCUSD,
-0.47%
Compared to the SPX of the S&P 500, according to Coindesk data, 22% have sunk to date, and 37% in the last 12 months,
-3.56%
13% loss this year and 1.3% decrease compared to last year.

[ad_2]

Source link

Leave feedback about this

  • Quality
  • Price
  • Service

PROS

+
Add Field

CONS

+
Add Field
Choose Image
Choose Video
X