Democratic politicians have reached out to Fidelity Investments CEO Abigail Johnson to ask why the company would offer such a “volatile, illiquid and speculative” asset as bitcoin in its 401(k) retirement plans.
In a letter in Johnson on Wednesday, Senators Dick Durbin, Tina Smith and Elizabeth Warren called the decision to allow Fidelity users access to the world’s biggest crypto “ill-advised” and “extremely troubling.”
Highlighting Bitcoin’s recent crash, the letter discussed the difficulties average Americans face when trying to save for retirement and listed a 20% investment limit and disclaimers on its website. show that Fidelity was well aware of the risks of investing in digital assets.
According to the senators, since there are so many many different ways for Americans to invest in bitcoin“Working family retirement accounts are no place to experiment with unregulated asset classes that have yet to demonstrate their value over time.”
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While acknowledging that “blockchain holds promise and has the potential to be used for innovative and exciting applications,” in its conclusion, the letter states: “Retirement accounts need to be held at a higher level, that that Bitcoin and other unregulated digital assets fail to come together. This asset class is heavy, immensely complex, unregulated and highly volatile», (emphasis added).
Senators await Fidelity’s response.