On Friday, May 21, Republicans in the House of Representatives presented a new measure that would prohibit the Department of Labor from limiting the investment alternatives available to employees in self-managed retirement accounts.
In addition, the law allows Americans to opt into retirement plans if they so desire. Bitcoin (BTC) will allow them to be included.
Democrats Oppose Fidelity’s Bitcoin Pension Fund
Florida Republican Byron Donalds was the person who introduced the Financial Freedom Act, which emerged as a solution to the question of whether Fidelity Investment would be allowed to offer a retirement plan that includes BTC later this year.
Last month, Fidelity announced that it plans to offer Bitcoin as an investment option in its retirement plans by the middle of this year.
This has alarmed many Democrat lawmakers, including Senator Elizabeth Warren, who has voiced concerns that the company may expose its customers to a “risky and speculative gamble”.
Today, I introduced the House companion of the Financial Freedom Act of 2022. This bill prohibits Biden’s @USDOL from restricting the type of investments that self-directed 401(k) account investors can choose. the great @SenTuberville is championing this bill in the US Senate. pic.twitter.com/c5zOJUEzCN
— Congressman Byron Donalds (@RepDonaldsPress) May 20, 2022
Republicans Came to Fidelity’s Aid
On the other hand, Republicans were quick to come to Fidelity’s aid, accusing the Democrats of excessive control and violating the free market rights of Americans.
Republican lawmakers said the measure was just cryptocurrency They emphasized that it is not related to the independence of investors and financial institutions.
Donalds said in a statement:
“The Biden administration is now trying to dictate how the American people invest their hard-earned money. This administration and any other government agency do not have the authority to direct the financial future of American investors.”
Fidelity’s decision came after the Labor Department opposed such a move, saying that companies investing in digital assets like Bitcoin could be examined.
The Labor Department’s Employee Benefits Security Administration had stated that fiduciaries “must be extremely careful” from investing in cryptocurrencies.
*Not investment advice.