US House Ways and Means chairman asks the GAO to check out crypto in retirement plans

US House Ways and Means chairman asks the GAO to check out crypto in retirement plans

Richard Neal, Chairman of the United States House of Representatives Ways and Means Committee, wrote a letter asking the Government Accountability Office to provide feedback on cryptocurrency use in retirement plans. The lawmaker stated that defined contribution plans such as the 401 (k) allow savers to include cryptocurrency in their plans. However, concerns have been raised about crypto’s volatility, lack of oversight, and the limited oversight.

Neal requested that the GAO compile a list listing crypto-friendly firms for their 401(k), with an indication of how much they are used. Neal also requested a description of how cryptocurrency is administered in these plans, as well as an assessment of their regulatory oversight and guidance. The GAO publishes analysis and recommendations on a variety of important issues to the U.S. legislative. The GAO’s findings are not legally binding.

Neal’s letter follows a statement by Marty Walsh, Labor Secretary, to the House Education and Labor Committee, that his department was considering a rulemaking regarding crypto in retirement plans. In March, the Labor Department (DOL), in compliance assistance release, promised that it would conduct an investigation into plans that allow participants to invest in cryptocurrencies or related products.

Fidelity Investments (a major provider of 401(k),) began offering crypto options as part of its retirement plans in April, despite the DOL’s statements. Senator Elizabeth Warren, a prominent crypto skeptic, reacted strongly to the move and demanded explanations on how Fidelty would deal with crypto risks. She also implied that there was a conflict of interests due to the company’s previous involvement in cryptocurrency.

Related: Yellen questions crypto’s role in 401(k), but says Congress could regulate

Tommy Tuberville, a Republican Senator, introduced the Financial Freedom bill in May to stop the DOL intervening in the inclusion of cryptocurrency by plan providers. ForUsAll, a 401(k), provider, sued the DOL in June to have the March Compliance Assistance Release annulled. They cited the Administrative Procedure Act.

Jeff Schulte, CEO of ForUsAll, stated in a statement Tuesday regarding Walsh’s testimony that “While we’re encouraged to see the Department of Labor consider following the proper rulemaking procedure for a change,” […] The DOL does not have the authority to choose winners or losers by trying to ban entire asset types.

2021's Most Anticipated Growth & Wealth-Building Opportunity

Join Thousands of Early Adopters Just Like You Who Want to Grow Capital and Truly Understand Cryptocurrency Together

Amy Jimenez

Amy Jimenez– Services My name is Amy Jimenez, and I am the main writer behind the" allthetopnews.com" for the ground-breaking and most fragile bits of knowledge into the most recent news in the services sector. I began my voyage of work as an autonomous investment advisor. I had around 4 years of involvement in this field. I am a free soul so; my energy for investigating the world has taken me to the countries over the globe and allowed me to report for a part of the best news affiliations. At present, I am a full-time manager as experienced in the account and began to utilize my capacities.

2021's Most Anticipated Growth & Wealth-Building Opportunity

Join Thousands of Early Adopters Just Like You Who Want to Grow Capital and Truly Understand Cryptocurrency Together

Close Bitnami banner
Bitnami