Three U.S. senators have written to Fidelity Investments CEO Abigail Johnson demanding an explanation for the financial services firm’s decision to include Bitcoin-exposed funds in its 401(k) retirement plans. “This decision is extremely troubling,” they wrote.
Democrats Dick Durbin, Elizabeth Warren and Tina Smith sent their letter on Tuesday. The letter, about a page and a half long, discussed Americans’ retirement savings habits in broad terms with minimal statistics but plenty of rhetorical flourishes and strings of adjectives. The money American consumers can invest in retirement funds is “hard-earned,” for example, and their “cryptocurrency casino” exposure is “a bridge too far.” The authors of the letter ask:
“When saving for retirement is already a challenge for so many Americans, why would Fidelity allow those who can save to be exposed to an untested and highly volatile asset like Bitcoin?”
There is no call to action in the letter other than “We look forward to your response”.
US senators upset that Fidelity Investments offers Bitcoin 401(k) retirement option
— no bitcoin bullshit (@nobsbitcoin) July 28, 2022
Senators opposed funds Fidelity Investments launched in March. Warren, who represents Massachusetts, the state in which Fidelity Investments is based, teamed up with Smith to write to Johnson in early May, sending a detailed and profusely noted letter object including Bitcoin (BTC) in pension plans. This letter ended with a list of questions and set a two-week response deadline.
The actions of Fidelity Investments have been controversial within the government. The Ministry of Labor published a compliance report prior to the announcement of Fidelity Investments’ adoption of crypto-exposed pension funds that promised a “survey program” intended for retirement plans that included crypto. This report eventually led to a trial against the department.
Also in early May, Republican Senator from Alabama, Tommy Tuberville introduces the Financial Freedom Act to protect investors’ right to include crypto in retirement accounts.