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US Senatoren fuerderen d'Fidelity fir seng Bitcoin Offeren no FTX-Blow-up ze iwwerdenken

11/22/2022
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United States senators Elizabeth Warren, Tina Smith, and Richard Durbin have renewed their calls for Fidelity Investments to reconsider offering a Bitcoin (BTC)-linked 401(k) retirement product. 

an engem Bréif addressed to Fidelity Investments CEO Abigail Johnson on Nov. 21, the three senators said the recent fall of FTX is more reason than any for the $4.5 trillion asset management firm to reconsider its Bitcoin offering to retirement savers, stating:

"Déi rezent Implosioun vu FTX, engem Krypto-Währungsaustausch, huet et vill kloer gemaach datt d'digitale Verméigenindustrie sérieux Problemer huet."

The senators also added that “charismatic wunderkinds, opportunistic fraudsters, and self-proclaimed investment advisors” have played a huge role in manipulating the price of Bitcoin (BTC), which in turn has impacted 401(k) retirement savings holders who have invested in Fidelity’s Bitcoin product:

"Zënter Juli, wéi mir d'lescht Bedenken mat Iech iwwer déi déif betreffend Perspektiv fir d'Aarbechtsplaz Pensiounspläng op Bitcoin ausgesat hunn, ass säi Wäert erofgaang."

“While the full extent of the damage caused by FTX continues to unfold, the contagion is being felt across the broader digital asset market. Bitcoin is no exception,” the senators commented.

The senators’ letter to the Fidelity CEO was the second in recent months, with the first letter on Jul. 26 demanding an explanation of why Fidelity decided to expose its customers to a Bitcoin 401(k) product to begin with.

“Since our 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,” the senators wrote.

Durbin, Smith and Warren also noted that some 32 million Americans and 22,000 U.S. employers use Fidelity as a workplace retirement account and employer-sponsored plan.

The senators added that with a retirement security crisis already playing out in the country, Fidelity shouldn’t be exposing its customer’s retirement savings to an “unnecessary risk.”

“In light of these risks and continuous warning signs, we again strongly urge Fidelity Investments to do what is best for plan sponsors and plan participants—seriously reconsider its decision to allow plan sponsors to offer Bitcoin exposure to plan participants.”

Cointelegraph reached out to Fidelity for their comment on the letter but did not receive an immediate response.

Verbonnen: Dem Fidelity seng Krypto Ambitiounen si méi grouss wéi erwaart: Bericht

Meanwhile, not all U.S. lawmakers appear to have sided with the three crypto-skeptic senators in the past. 

In May. 2022, Republican Senator Tommy Tuberville introduced the Financial Freedom Act into the U.S. Congress, which serves to allow U.S. residents to add cryptocurrency to their 401(k) retirement savings plan without being subject to regulatory influence.

Fidelity has continued to increase its investment in the digital asset space, with plans to expand its digital asset division by 25% with 100 new employees by the end of Q1 2023.