Three U.S. lawmakers have pushed back against the Labor Department's plan to include digital assets in 401(k) retirement plans, warning it could risk Americans' savings. The initiative, intended to broaden investment choices, immediately met legislative opposition.
In a letter, the Congress members cited crypto's high volatility and "lack of regulation and safeguards" as key concerns. Bitcoin's frequent 10% daily swings conflict with the steady growth needed for retirement, they noted. A market crash could cause irreversible losses, with little regulatory protection available.
The 401(k) is a vital retirement tool in the U.S., typically invested in stable assets like stocks and bonds. Lawmakers stressed that without proper federal oversight, adding digital assets could expose savers to fraud and manipulation. Custody and tech risks also remain unsolved.
The opposition shows strong policy resistance to crypto entering mainstream retirement funding. Congressional intervention now clouds the future of the Labor Department's plans.