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Usha Yadav
Jun 10, 2022
by Usha Yadav

Janet Yellen Calls Crypto A 'Very Risky' Option for Retirement Savers

Janet Yellen Crypto

Table of contents

  1. Fidelity Investments Announcement
Janet Yellen, the US Treasury Secretary, spoke out against crypto being included in retirement plans, calling them a "very dangerous investment" that should be controlled by Congress. On June 9, at a New York Times event in Washington, Yellen expressed her thoughts on Fidelity Investments' pioneering attempt to embrace cryptocurrency in retirement plans. She said,
"It's not something that I would recommend to most people who are saving for their retirement. To me it's a very risky investment."

The Department of Labor, as well as Senators Elizabeth Warren, Tommy Tuberville, and Cynthia Lummis, took part in a discussion about digital currencies in 401(k) plans. Yellen even said that Congress might be able to control the types of assets that can be included in retirement plans. She stated,

"I'm not saying I recommend it, but that, to my mind, would be a reasonable thing."

Fidelity Investments Announcement

Fidelity Investments announced in April that 401(k) retirement savings account participants would be able to invest directly in Bitcoin (BTC). Senators Elizabeth Warren of Massachusetts and Tina Smith of Minnesota asked the firm to reply with a compliance report and a threat of legal action. At the same time, the US Department of Labor (DOL) issued a compliance report and threatened legal action.

Meanwhile, Alabama Senator Tommy Tuberville has introduced the Financial Freedom Act which would allow investors to add cryptocurrency to their 401(k) retirement savings plan, and Wyoming Senator Cynthia Lummis has teased the legalisation of cryptocurrency in 401(k)s as part of her long-awaited crypto bill.

 

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Janet Yellen Calls Crypto A 'Very Risky' Option for Retirement Savers
Usha Yadav
Usha is a diehard crypto enthusiast and has been actively writing on different facets of the blockchain and crypto world. She has authored many research articles on cryptocurrency and aims to provide informational and quality content to readers. She firmly believes that crypto has a great potential to redefine the world of finance and blockchain.

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