New Financial Freedom Act Would Allow Cryptocurrency In Pensions!

May 6, 2022 1:05 pm

One Republican lawmaker wants to bring cryptocurrency to pensions!

Senator Tommy Tuberville of Alabama has introduced the Financial Freedom Act which would allow Americans to add cryptocurrency to their 401k retirement plans.

Previously the Department of Labor released regulatory guidance in an attempt to restrict cryptocurrency from being added to 401k retirement plans but now it appears lawmakers are fighting back.

Although politically the nation is divided more than ever, hopefully, lawmakers can come together and do what’s right when it comes to cryptocurrency.

Crypto Potato had more on the story:

The Republican lawmaker believes the government should not limit the type of assets that people can select for their retirement plans.

In an op-ed for CNBC on May 5, Tuberville wrote that: “The federal government has no business interfering with the ability of American workers to invest their 401(k) plan savings as they see fit.”

In March, the U.S. Department of Labor released regulatory guidance in an attempt to prohibit 401(k) accounts from investing in crypto assets, singling out that specific asset class. A 401(k) is an employer-sponsored defined-contribution pension plan.

Previously, pension plan participants could use “brokerage windows,” a tool used by savers to self-select their retirement investments. “The agency’s new guidance ends this tradition of economic empowerment in favor of big-brother government control,” added Tuberville.

Cointelegraph got the scoop too:

Republican Senator Tommy Tuberville from Alabama has unveiled a new bill he calls the Financial Freedom Act to allow Americans to add cryptocurrency to their 401(k) retirement savings plan unencumbered by regulatory guidance.

The new bill is Tuberville’s response to the United States Department of Labor’s (DOL) push to potentially keep crypto out of 401(k) investment plans due to its perceived potential for risk to investors. As Cointelegraph previously reported, the DOL said employees who choose to invest in crypto through their 401(k) could attract legal attention.

In an op-ed for CNBC on Thursday, Senator Tuberville stated:

“The Federal Government has no business interfering with the ability of American workers to invest their 401(k) plan savings as they see fit.”
He said the DOL’s March 10 policy change against the use of brokerage windows by employees to self-direct their income investments is “inconsistent with longstanding practice.”

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