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US SEC Chair Atkins: Education is key for crypto in retirement accounts
US Securities and Exchange Commission (SEC) Chair Paul Atkins showed openness to allowing cryptocurrencies in 401 (k) retirement plans for Americans, but highlighted the need for responsible disclosure.
During a Bloomberg interview published Friday, Atkins did not rule out allowing cryptocurrencies into 401 (k) plans. Still, he emphasized that education on the risks associated with such an investment is crucial.
“Disclosure is key and that people need to know what they are getting into,” Atkins said when asked about the potential inclusion of crypto into 401 (k) plans. Still, he added that he looks “forward to whatever may come out from the president.”
US President Donald Trump is reportedly set to sign an executive order that could allow 401(k) retirement plans to invest in assets other than stocks and bonds, such as cryptocurrencies. In April, Alabama Senator Tommy Tuberville said he would reintroduce a bill he sponsored in May 2022 that would scale back regulations on the types of investments used in 401(k) retirement plan fiduciaries.
A 401(k) is a US employer-sponsored retirement plan that allows workers to defer part of their salary into tax-advantaged investment accounts, often with employer matching contributions.
Expectations of crypto in 401 (k) plans
Also in April, Fidelity, a financial services company with $5.9 trillion in assets under management, introduced retirement accounts that will allow Americans to invest in crypto nearly fee-free. The three new accounts are a tax-deferred traditional IRA and two Roth IRAs (one of which is a rollover) that will enable the inclusion of Bitcoin (BTC), Ether (ETH), and Litecoin (LTC).
Related: Is Bitcoin a good investment for retirement?
At the end of May, the US Labor Department rescinded guidance issued during the administration of former President Joe Biden administration that limited the inclusion of cryptocurrency in 401(k) retirement plans.
“We’re rolling back this overreach and making it clear that investment decisions should be made by fiduciaries, not D.C. bureaucrats,” US Secretary of Labor Lori Chavez-DeRemer said at the time.
Magazine: Older investors are risking everything for a crypto-funded retirement