US Treasury Secretary Yellen warns cryptocurrency ‘very risky’ – unsuitable for most retired savers – Bitcoin news regulation

US Treasury Secretary Yellen warns cryptocurrency ‘very risky’ – unsuitable for most retired savers – Bitcoin news regulation

U.S. Treasury Secretary Janet Yellen warns that cryptocurrency is a “very risky investment,” adding that she would not recommend it to most people who save for retirement. However, Yellen noted that Congress could limit the type of investment allowed on retirement accounts, including plans 401 (k).

Janet Yellen on investing in cryptocurrencies for retirement

The question of whether Americans should be able to invest their pension savings in cryptocurrencies is still hotly debated.

U.S. Treasury Secretary Janet Yellen was asked Thursday at an event hosted by the New York Times about Fidelity announcement allow bitcoin as an investment option in 401 (k) plans.

Yellen replied:

This is not something I would recommend to most people who save for retirement… For me, it is a very risky investment.

Fidelity’s announcement followed guidelines issued by the Department of Labor (DOL) warning administrators of Plan 401 (k) about allowing cryptocurrencies in retirement plans. Fidelity is one of the largest 401 (k) plan administrators.

Ali Khawar, acting assistant secretary of DOL’s Benefit Security Administration, said the Labor Department was “seriously concerned about what Fidelity has done.” He under stress“Cryptocurrencies can pose serious risks to retirement savings.”

Finance Minister Yellen also noted on Thursday that Congress could regulate what funds could be included in retirement plans such as 401 (k). Commenting on whether Congress should take action, Yellen clarified:

I’m not saying I recommend it, but in my opinion it would be reasonable.

Labor efforts to restrict Americans from putting cryptocurrencies into retirement accounts have upset some lawmakers. In response, U.S. Senator Tommy Tuberville (R-AL) introduced Law on Financial Freedom to prohibit DOL “from issuing a regulation or guidelines restricting the type of investment that independent investors of account 401 (k) may choose through a brokerage window”. Moreover, the Department of Labor was sued through its cryptocurrency.

Labels in this story

401к, 401K order, 401k plans, 401k crypto plans, 401K is planning a cryptocurrency, bitcoin pension, crypto retirement, cryptocurrency retirement, fidelity, Janet Yellen, Janet wants crypto, Janet yellen cryptocurrency, pension plans, Treasury Secretary

What do you think of Finance Minister Janet Yellen’s comments? Let us know in the comments section below.

US Treasury Secretary Yellen warns cryptocurrency ‘very risky’ – unsuitable for most retired savers – Bitcoin news regulation

Kevin Helms

A student of Austrian economics, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests lie in the security of Bitcoin, open source systems, network effects and the crossroads between economics and cryptography.

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