Latest Posts

US Treasury Secretary Yellen Warns Crypto Is ‘Very Risky’ — Unsuitable for Most Retirement Savers

- Advertisement -


US Treasury Secretary Janet Yellen warns that crypto is a “highly risky investment”, adding that she would not recommend it to most people who are saving for retirement. However, Yellen noted that Congress may limit the type of investments allowed in retirement accounts, including 401(k) plans.

Janet Yellen on investing in cryptocurrencies in retirement

- Advertisement -

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

- Advertisement -

At an event hosted by the New York Times on Thursday, US Treasury Secretary Janet Yellen was asked about Fidelity’s announcement to allow bitcoin as an investment option for 401(k) plans.

- Advertisement -

Yellen replied:

It’s not something I would recommend to most people who are saving for retirement… It’s a very risky investment for me.

Fidelity’s announcement follows Department of Labor (DOL) guidance warning 401(k) plan administrators to allow cryptocurrencies in retirement plans. Fidelity is one of the largest admins of 401(k) plans.

Ali Khawar, acting assistant secretary for the DOL Employee Benefits Administration, said the Labor Department was “very concerned about what Fidelity has done.” He emphasized that “cryptocurrencies can pose serious risks to retirement savings.”

Treasury Secretary Yellen also noted Thursday that Congress can regulate what assets can be included in retirement plans such as 401(k). Commenting on the question of whether Congress should take action, Yellen explained:

I’m not saying I recommend it, but I think it would make sense.

Labor Department efforts to ban Americans from depositing crypto in retirement accounts have upset some lawmakers. In response, U.S. Senator Tommy Tuberville (R-AL) introduced the Financial Freedom Act to prohibit the DOL from “making rulings or guidelines that limit the type of investment that stand-alone 401(k) account investors may choose through the brokerage window.” “. Additionally, the Department of Labor has been sued over its cryptocurrency guidance.

What do you think of Treasury Secretary Janet Yellen’s comments? Let us know in the comments below.

Denial of responsibilityA: This article is for informational purposes only. This is not a direct offer or solicitation to buy or sell, nor is it a recommendation or endorsement of any products, services or companies. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is directly or indirectly liable for any damage or loss caused or alleged to be caused by the use of or reliance on any content, goods or services mentioned in this article.



Credit : news.bitcoin.com

- Advertisement -

Latest Posts

Don't Miss