US Treasury chief called investing retirements in cryptocurrencies risky

According to Janet Yellen, Congress should regulate what assets can be included in retirement programs

10.06.2022 - 13:15

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What’s new? US Treasury Secretary Janet Yellen said that cryptocurrency assets are a “very risky” choice to include in retirement plans. She shared her views on Fidelity's proposal to invest retirement savings in bitcoin during a New York Times event in Washington on June 9.

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What else did Yellen say? The head of the Treasury believes that Congress should regulate what assets can be included in tax-favored retirement plans, like 401(k). Yellen also recommends against investing retirement savings in cryptocurrencies.

Earlier, Fidelity's proposal to invest retirement savings in bitcoin was criticized by the US Department of Labor. The agency's concerns were related to the volatility of the first cryptocurrency. Democratic Senators Elizabeth Warren and Tina Smith also criticized Fidelity's initiative and sent a letter to the company's CEO Abigail Johnson. The officials called investing in cryptocurrencies a “risky and speculative gamble.”

On June 2, the pension fund ForUsAll sued the US Department of Labor for criticizing cryptoinvestments. The platform is seeking a withdrawal of the release that said the agency would “conduct an investigative program” into 401(k) plans containing digital currencies.

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