US lawmakers are reintroducing bills to remove roadblocks to crypto investments in retirement accounts
Alabama Senator Tommy Tuberville has reintroduced legislation aimed at allowing US 401(k) retirement plans to include exposure to cryptocurrencies.
In a Feb. 15 announcement, Tuberville said the Financial Freedom Act — which he first introduced to the U.S. Senate in May 2022 — aimed to reverse Labor Department policies governing the type of investments allowed in 401(k) plans, including crypto. According to the senator, the bill would prevent the DOL from pursuing enforcement actions for individuals “who use brokerage windows to invest in cryptocurrency.”
“The federal government should not be picking winners and losers in the investment game,” Tuberville said. “My bill ensures that everyone who earns a paycheck has the financial freedom to invest in their future as they see fit.”
Sen. Tuberville (R) plans to reintroduce the ‘Financial Freedoms Act’
It aims to stop the Department of Labor from restricting individuals from investing their 401k in crypto
“Every American should have the right to invest their retirement money as they see fit”$BTC up 8% today pic.twitter.com/e9saPsj5j6
— Nancy Pelosi Stock Tracker ♟ (@PelosiTracker_) 15 February 2023
Tuberville reported that Senators Cynthia Lummis, Rick Scott and Mike Braun had signed on as co-sponsors of the bill. Lummis said in a December 2022 interview — following the crypto market crash and the bankruptcies of major firms including FTX, Voyager Digital and Celsius Network — that she was “very comfortable” with allowing US investors to include Bitcoin (BTC) in their retirement accounts.
Politico reported on February 14 that Florida Representative Byron Donalds planned to introduce a similar bill in the House of Representatives on February 17. Donalds and Tuberville, both members of the Republican Party, may face opposition from across the aisle — Democratic Sen. Elizabeth Warren has previously expressed concern about Fidelity Investments’ plans to include BTC in 401(k) accounts.
Related: Almost 50% of Gen Z and Millennials Want Crypto in Retirement Funds: Survey
The March 2022 DOL notice warned 401(k) account holders to “exercise extreme caution” when handling investments in cryptocurrencies, citing the risk of fraud, theft and loss of funds. The US Securities and Exchange Commission’s Office of Investor Education and Advocacy, the North American Securities Administrators Association and the Financial Industry Regulatory Authority also issued a notice on February 7 warning that self-directed individual retirement accounts may include cryptocurrencies as potentially risky investments.
