05.05.22

U.S. Senators Question Fidelity’s Plan to Put Bitcoin in 401(k)s

by: Anne Tergesen

U.S. Democratic Senators Elizabeth Warren of Massachusetts and Tina Smith of Minnesota raised questions about a plan by Fidelity Investments to let investors put bitcoin in their 401(k)s in a letter to the company’s chief executive, arguing that crypto might be too risky an investment for retirement savers. In the letter, the lawmakers said Fidelity has potential conflicts of interest because it has mined bitcoin and offers a crypto fund for wealthy investors. The letter asked for information on the extent to which those potential conflicts might have affected the decision to offer bitcoin. "Investing in cryptocurrencies is a risky and speculative gamble, and we are concerned that Fidelity would take these risks with millions of Americans’ retirement savings,” the senators wrote in the letter addressed to Fidelity Chief Executive Abigail Johnson.

Read the full article on Wall Street Journal