U.S. Sen. Tommy Tuberville (R-AL) is reintroducing the Financial Freedom Act—targeting the Labor Department’s previous compliance assistance regarding cryptocurrency investments in 401(k) plans.
The legislation—first introduced about a year ago—would reverse the March 10, 2022, regulatory guidance released by the Employee Benefits Security Administration. According to Tuberville’s press release, that guidance “attempted to bar 401(k) investors from investing in cryptocurrency and undermined the ability of 401(k) plans to offer brokerage windows, which give retirement plan participants the ability to personally control how their assets are invested.”
Tuberville claims that the DOL guidance “threatened that employers and investment firms could be subject to investigation and enforcement actions should they allow individuals using brokerage windows to invest in cryptocurrency.” According to a press release, the bill would bar such investigations and enforcement actions, “opening the door for Americans to invest their savings in investments of their choice.”
“The Biden administration can’t keep its hands off of Americans’ finances,” said Sen. Tuberville. “Meddling in 401(k) investments through overregulation restrains financial growth and restricts personal liberty. The federal government shouldn’t choose winners and losers in the investment game. Bureaucrats have no business telling hardworking Americans how to manage their savings accounts. My bill ensures that everyone who earns a paycheck has the financial freedom to invest in their futures however they see fit.”
Cosponsors in the U.S. Senate include Sens. Cynthia Lummis (R-WY), Rick Scott (R-FL), and Mike Braun (R-IN).
According to Politico Pro, Rep. Bryon Donalds (R-FL) will introduce a companion bill in the U.S. House of Representatives on February 17.