Democrats push Labor Department to scrap crypto 401(k) proposal

cryptonews13:57

Three senior Democratic lawmakers have called on the U.S. Labor Department to withdraw a proposal that could open the country’s roughly $10.1 trillion 401(k) retirement market to cryptocurrencies and ...

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href=https://crypto.news/democrats-push-labor-department-to-scrap-crypto-401k-proposal/><strong>cryptonews</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Three senior Democratic lawmakers have called on the U.S. Labor Department to withdraw a proposal that could open the country’s roughly $10.1 trillion 401(k) retirement market to cryptocurrencies and ...</p>\n\n<a href=\"https://crypto.news/democrats-push-labor-department-to-scrap-crypto-401k-proposal/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"NCIQ","symbol_name":"HASHDEX NASDAQ CRYPTO INDEX US 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could expose retirement savers to volatile digital assets and increase the risk of fraud and investor harm.Their objections come as the Trump administration pushes to expand crypto access in retirement accounts and as lawmakers debate the CLARITY Act in Congress.According to a letter sent Tuesday by Senator Bernie Sanders, Senator Elizabeth Warren, and Representative Bobby Scott, the lawmakers urged acting Labor Secretary Keith Sonderling to rescind the department’s proposal allowing private equity, private credit, digital assets, and similar investments to be o","collect":0,"end_time":0,"defaultTopTitle":"crypto.news","property":[],"viewcount":null,"language":"en","relate_stocks":{"NCIQ":"HASHDEX NASDAQ CRYPTO INDEX US ETF","DAPP":"VanEck Digital Transformation ETF","BITW":"Bitwise 10 Crypto Index ETF","BITQ":"Bitwise Crypto Industry Innovators ETF","GDLC":"Grayscale CoinDesk Crypto 5 ETF","TEKX":"SPDR Galaxy Transformative Tech Accelerators ETF","CRPT":"First Trust SkyBridge Crypto Industry and Digital Economy ETF","LFGY":"YieldMax Crypto Industry and Tech Portfolio Option Income ETF","DIME":"CoinShares Altcoins ETF","BKCH":"AdvisorShares Sabretooth ETF","STCE":"Schwab Crypto Thematic ETF"},"translate_title":"民主党推动劳工部废除加密货币401(k)提案","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"DAPP":1.5,"NCIQ":1.5,"TEKX":1.5,"CRPT":1.5,"STCE":1.5,"BKCH":1.5,"BITQ":1.5,"BITW":1.5,"LFGY":1.5,"DIME":1.5,"GDLC":1.5},"content_text":"Three senior Democratic lawmakers have called on the U.S. Labor Department to withdraw a proposal that could open the country’s roughly $10.1 trillion 401(k) retirement market to cryptocurrencies and other alternative investments.\n\n\nSummary\n\n\n\nBernie Sanders, Elizabeth Warren and Bobby Scott have urged the Labor Department to withdraw its proposal allowing crypto and other alternative assets in 401(k) retirement plans.\nThe lawmakers said the policy could expose retirement savers to volatile digital assets and increase the risk of fraud and investor harm.\nTheir objections come as the Trump administration pushes to expand crypto access in retirement accounts and as lawmakers debate the CLARITY Act in Congress.\n\n\n\nAccording to a letter sent Tuesday by Senator Bernie Sanders, Senator Elizabeth Warren, and Representative Bobby Scott, the lawmakers urged acting Labor Secretary Keith Sonderling to rescind the department’s proposal allowing private equity, private credit, digital assets, and similar investments to be offered through retirement plans.\nServing as the ranking members of the Senate Banking Committee, Senate Committee on Health, Education, Labor and Pensions, and House Committee on Education and Workforce, respectively, the lawmakers argued that the policy could expose retirement savers to assets they described as highly volatile and vulnerable to fraud.\nIn the letter, Sanders, Warren, and Scott said cryptocurrencies lack sufficient investor protections and warned that many digital assets remain susceptible to misconduct due to what they characterized as limited regulatory safeguards.\n\n“The application of securities laws to crypto assets is rapidly evolving, and many securities law protections that investors have for public securities may not be available for crypto. This lack of sufficient guardrails is likely to harm investors.”\n\nDemocrats renew opposition to crypto in retirement plans\nTuesday’s letter builds on concerns Warren raised earlier this year after the Labor Department unveiled draft guidance designed to permit alternative assets inside 401(k) plans.\nBack in March, the department proposed a framework that would allow retirement plan sponsors to offer investments ranging from private equity and private credit to Bitcoin and other digital assets, provided fiduciaries could demonstrate compliance with ERISA prudence standards involving diversification, liquidity, valuation, fees, and participant understanding.\nLabor Department officials said at the time that the proposal was not intended to create unrestricted access to crypto or private markets. Instead, the agency said it sought to replace blanket restrictions with case-by-case reviews conducted by plan fiduciaries.\nUnder the proposal, retirement plans would not be required to add digital assets or private funds. Employers choosing to offer such investments, however, would need to document detailed due diligence before making them available to participants.\nEarlier criticism from Warren cited research from the U.S. Government Accountability Office describing crypto assets as uniquely volatile and difficult to evaluate using traditional forecasting methods. \nIn a separate letter reported by CNBC in March, she argued that retirement accounts should serve as long-term financial support rather than vehicles for high-risk investments.\nTrump order and ethics concerns remain central\nCurrent opposition from Democrats also targets the policy’s origins within the Trump administration.\nThe Labor Department’s proposal followed an executive order signed by President Donald Trump on April 30 directing federal agencies to expand access to alternative assets, including cryptocurrencies, within retirement accounts. The order instructed the Labor Department to revisit ERISA guidance while directing the Securities and Exchange Commission to examine pathways for 401(k) investors to gain exposure to alternative investments.\nAt the time, Labor Secretary Lori Chavez-DeRemer said retirement investment decisions should be left to Americans rather than dictated by the federal government. Administration officials also framed the initiative as part of an effort to increase access to investment options for retirement savers.\nAlongside their concerns about investor protection, Sanders, Warren, and Scott questioned whether the proposal could financially benefit individuals connected to the administration. Their letter said President Trump was “rife with conflicts of interest in this area,” citing the Trump family’s involvement with crypto venture World Liberty Financial.\nQuestions surrounding ethics and conflicts of interest have also surfaced during congressional negotiations over the CLARITY Act, a digital asset market structure bill expected to receive Senate attention in the coming weeks. \nDemocratic lawmakers have repeatedly stated they will oppose crypto legislation that does not include provisions addressing ethics and potential conflicts involving public officials.\n\n\n\n\n\n                Read more:\n            \nGalaxy Digital enters prediction markets as Arca places $10M trade","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"isVideo":false,"video":null,"symbols":[],"gpt_button":0,"need_auth":false,"need_login_tip":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"tenantId":"TBGLOBAL","deviceId":"web-server-community-laohu8-v3","version":"4.43.1","shortVersion":"4.43.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2640976339","isCrawlerRequest":true}