US Senators Ask Fidelity Investments To Reconsider Retirement Plan With Bitcoin

Three senators from the United States have once more requested that Fidelity Investments rethink its decision to permit retirement plan participants to invest in Bitcoin.

After first bringing up the matter in July, Sens. Richard Durbin, D-Ill., Elizabeth Warren, D-Mass., and Tina Smith, D-Minn., wrote the November 21 letter to Fidelity Investments CEO Abigail Johnson. Smith and Warren are on the Banking Committee, and Durbin, who serves as the majority whip, is the second-ranking Democrat in the Senate.

According to the letter:

“The recent implosion of FTX, a cryptocurrency exchange, has made it abundantly clear the digital asset industry has serious problems. The industry is full of a charismatic wunderkind, opportunistic fraudsters, and self-proclaimed investment advisors promoting financial products with little to no transparency. As a result, the ill-advised, deceptive, and potentially illegal actions of a few have a direct impact on the valuation of Bitcoin and other digital assets.”

In April, Fidelity announced that it was putting the finishing touches on a program that would let owners of 401(k) plans invest up to 20% of their retirement funds in Bitcoin. And the letter adds that such a decision would involve the extremely risky and unstable market for digital assets.

“As one of the largest 401(k) providers in the world, Fidelity Investments is a global leader in traditional finance and retirement security. More than 32 million Americans and 22,000 employers trust Fidelity Investments with their workplace retirement accounts and employer-sponsored plans. Yet in recent years, Fidelity Investments has opted to expand beyond traditional finance and delve into the highly unstable and increasingly risky digital asset market.”

Its subsidiary, Fidelity Digital Assets, recently added ether trading for institutional clients and is getting ready to introduce Fidelity Crypto, a new retail trading platform. This is one of Fidelity Investment’s forays into this ostensibly dangerous industry.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

Coincu News