New York Attorney General Letitia James has urged Congress to pass a law banning cryptocurrency investments in retirement accounts. She stressed that “hard-working Americans should not worry about wiping out their retirement savings over risky bets on unstable assets like cryptocurrencies.”
NYAG Letitia James urges Congress to ban cryptocurrency investments in retirement accounts
New York Attorney General Letitia James announced Tuesday that she has “urged congressional leaders to adopt legislation prohibiting investing retirement funds in digital assets, such as cryptocurrencies, digital currencies, and digital tokens.”
James wrote in the letter I sent to Sens. Ron Wyden (D-Oregon), Sen. Mike Crapo (R-AZ), Rep. Richard Neal (D-Massachusetts) and Rep. Kevin Brady (R-Texas) on Tuesday. :
On behalf of the people of New York State, I urge Congress to pass legislation to designate digital assets — for example, cryptocurrencies, digital currencies, and digital tokens — as assets that cannot be purchased using money in Individual Retirement Accounts (IRAs) and Defined Contribution Plans, such as 401(k) plans. and 457.
James gave some reasons why cryptocurrencies are too risky to be allowed in retirement plans. In addition to having no intrinsic value, she said she is very volatile and “often a tool for fraud and crime”.
The attorney general also referred to the terra crash and the FTX crash, both of which were followed by sell-offs in the crypto market. Cryptocurrency exchange provided by FTX for bankruptcy On the 11th of november middle investigations They mishandled customer money.
Citing “the recent crashes in the cryptocurrency market and other market disruptions,” Attorney General James said:
Investing Americans’ hard-earned retirement money into crashing cryptocurrencies could eliminate a lifetime of hard work.
Time and again, we have seen the risks and pitfalls of cryptocurrencies and the extreme volatility of these funds. Hardworking Americans should not worry about wiping out their retirement savings over risky bets on unstable assets like cryptocurrencies, the attorney general stressed.
James also wants lawmakers to reject two bills that would allow crypto investments in retirement accounts. I wrote:
I urge Congress to reject the recently proposed Retirement Savings Modernization Act… and the Financial Freedom Act of 2022.
The Retirement Savings Modernization Act James explained that it would “explicitly allow fiduciaries in a 401(k) plan to make digital assets an investment option.”
The Financial Freedom Act of 2022 The New York Attorney General stressed that it would “prevent the Secretary of Labor from restricting or prohibiting the pool of investments offered through a self-directed brokerage window, that is, the Secretary of Labor would not be able to prohibit investments in digital assets.”
Fidelity Investments, the largest 401(k) official by assets, began offering Bitcoin investments in retirement accounts this fall. This has troubled US Department of Labor. Treasury Secretary Janet Yellen has it, too warned that the cryptocurrency is “too risky,” while noting that it is not suitable for most retired savers. This week, three US Senators sent A message To Fidelity CEO Abigail Johnson, she urged her company to stop offering bitcoin as an option for retirement accounts.
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