Senator Warren Urges Labor Department to Rescind Rule Allowing Crypto in 401(k) plans

Senators Elizabeth Warren and Bernie Sanders, and Rep. Robert Scott, are pushing for the Labor Department to scrap the rule that allows crypto’s inclusion in 401(k) plans. These Democrats also called out U.S. President Donald Trump for his conflict of interest with his involvement in the crypto industry.

Senator Elizabeth Warren Pushes To Scrap Crypto In 401(k) Plans

In a press release, the ranking members announced they had sent a letter to the Department of Labor urging it to rescind its proposal to allow crypto and other alternative assets in 401(k) plans. Senator Elizabeth Warren notably sent this letter in her position as a ranking member on the Senate Banking Committee.

These Democrats stated that the move to include crypto in these retirement plans compounds the problem of exposing seniors to major losses and financial instability. This came as they noted that federal efforts to expand retirement income must prioritize cost-effectiveness, stability, and safety.

Senator Elizabeth Warren and the other ranking members also noted that the Labor Department’s proposal makes available the estimated $14.2 trillion in workers’ retirement savings for crypto and other alternative investments. “These investments have more expensive fees and are more complex, opaque, and volatile than traditional 401(k) plans—exposing seniors to greater financial risk,” they said.

As CoinGape reported, the White House approved the inclusion of Bitcoin and crypto assets in 401(k) retirement plans earlier this year. The Labor Department now has to make an official decision on the proposal on whether to allow retirement funds to flow into crypto and alternative assets.

Lawmakers Call Out Trump’s Crypto Involvement

Senator Elizabeth Warren and the other ranking members called out President Trump’s involvement in crypto and his and his family’s conflict of interest. “In the midst of these egregious conflicts, the DOL’s proposed rule has the potential to boost the President’s bottom line at the expense of ordinary workers and retirees,” they said.

Notably, the president’s involvement in crypto remains a sticky point between Democrats and Republicans, even as they negotiate to pass the CLARITY Act. The CLARITY Act has already advanced to the Senate floor, but Democrats have signaled they will not support the crypto bill unless it includes an ethics provision.

Meanwhile, the Democrats cited how President Trump has enriched himself through his crypto ventures. They cited a report revealing that the Trump family has amassed $5 billion in paper wealth since the World Liberty Financial token began trading.