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Yellen wary of inclusion of crypto in retirement plans

Yellen
TL;DR Breakdown
  • Yellen worried about the inclusion of crypto in retirement plans
  • The Secretary is worried about the risky nature of the assets
  • US executives hold different stances on crypto in retirement plans

US Secretary Janet Yellen has given her opinion about plans by several parties to add digital assets to the portfolio of investments for retired workers. According to her latest statement, the US secretary is wary of the move after branding the assets very risky. Yellen, alongside other top players in the country, has often called for regulating the assets. She mentioned this and many other related issues at a recent event that was held yesterday.

Janet Yellen worried about the risky nature of crypto

According to the report, her outburst resulted from Fidelity Investments’ move to add digital assets to its retirement plan. In her statement, Yellen played down the safety of the investments and warned retiring workers not to go near the assets s a choice of investment.

The discussion also involved other interested parties in the United States, with Senator Lummis and Warren leading the dialogue. In her statement, Yellen mentioned that the choice of asset that retiring workers prefer to invest in can be regulated by Congress. Although she said she is not calling for them to take action, it would be reasonable if they did.

US executives hold different stances on crypto in retirement plans

The last statement is one of the core reasons why the issue of adding crypto to retirement programs has been discussed a lot in the past. Since the inception of crypto, there have been calls as to whether the government should regulate it or not. However, citing a law in the Retirement Act of 1974 shows that no entity has power over what asset should be removed or added to the retirement programs. However, the law charges those controlling it to ensure that they have the skill and that someone knowledgeable in the asset would apply.

Fidelity Investments announced some months ago that its customers who prefer to hold their retirement savings in Bitcoin can now leverage its program. Although the department of labor warned the company against it, nothing has been done except the threat of legal sanctions. There have also been calls by executives at the top, including Yellen, on how Fidelity plans to eliminate the risks from investments in digital assets. In the same vein, Senator Tuberville has announced that retiring workers who intend to save their benefits in crypto can do that in Alabama through the Freedom Act. Asides from that, Senator Lummis has also been mulling a law that will clear retiring workers to use crypto.

Owotunse Adebayo

Owotunse Adebayo

Adebayo loves to keep tab of exciting projects in the blockchain space. He is a seasoned writer who has written tons of articles about cryptocurrencies and blockchain.

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