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A trio of Democratic U.S. Senators are—once again—calling for Fidelity to drop its 401(k) plan crypto option.
Sens. Dick Durbin (D-IL), Elizabeth Warren (D-MA) and Tina Smith (D-MN) have written to Fidelity CEO Abigail Johnson noting that “in light of the recent stunning events in the digital asset market, we write today as a follow up to our previous letter sent on July 26, 2022. Once again, we strongly urge Fidelity Investments to reconsider its decision to allow 401(k) plan sponsors to expose plan participants to Bitcoin.”
The trio comments that since that previous letter “the digital asset industry has only grown more volatile, tumultuous, and chaotic—all features of an asset class no plan sponsor or person saving for retirement should want to go anywhere near.”
Citing the recent “implosion of FTX,” as well as the current value of Bitcoin ($16,884 versus $21,239 at the date of their prior letter), the senators again implore Fidelity to “seriously reconsider its decision to allow plan sponsors to offer Bitcoin exposure to plan participants.”
They close by noting that, “by many measures, we are already in a retirement security crisis, and it should not be made worse by exposing retirement savings to unnecessary risk. Any investment strategy based on catching lightning in a bottle, or motivated by the fear of missing out, is doomed to fail.”
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