US lawmakers ask Fidelity to drop its Bitcoin 401k plan

on Nov 22, 2022
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  • Lawmakers want to see Fidelity Investments drop its plan to allow customers to add BTC to their 401(k) account
  • Fidelity is the biggest provider of 401(k) accounts in the US.
  • Senators Elizabeth Warren, Tina Smith and Richard Durbin sent their letter after the FTX collapse.

United States lawmakers are asking Fidelity Investments, the leading provider of 401(k) accounts in the US, to reconsider its decision to offer Bitcoin as part of its customers’ retirement plans.

The latest push, according to a report out early Tuesday, comes even as the cryptocurrency industry battles fresh contagion fueled by crypto exchange FTX’s collapse.

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The group of US senators are voicing fresh concerns over Fidelity’s plans and wish to see the company drop the offer. According to the lawmakers, and as indicated in their joint letter, FTX’s troubles and the events leading to its bankruptcy filing are clear signals that the sector has problems.

In their letter, three US Senators – Elizabeth Warren, Tina Smith and Richard Durbin – asked Fidelity not to go through with its 401(k) plan on Bitcoin.

It’s not the first time US legislators are voicing concern over Fidelity’s plans, with a previous letter also suggesting the move could see customers harmed. 

In this week’s letter, the senators say crypto is replete with “charismatic wunderkinds” and fraudsters, whose shady doings expose customers to various risks.

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