On Friday, May 21, House Republicans presented a new bill that would ban the Labor Department from restricting the investment options available to employees in self-directed retirement plans. Additionally, the legislation would allow Americans to enrol Bitcoin in their 401(k) plans if they plan to choose.
The Financial Freedom Act was sponsored by Republican Byron Donalds of Florida in response to the most recent political flashpoint: cryptocurrencies, especially the subject of whether or not Fidelity Investments should be allowed to provide a retirement plan that includes Bitcoin later this year.
Fidelity said last month that it planned to include bitcoin as an investment option in its 401(k) plans by the middle of this year. Many Democratic politicians, including Senator Elizabeth Warren, expressed concern that the corporation was subjecting its customers to a “risky and speculative gamble.”
On the other hand, Republicans have rushed to Fidelity’s defence, accusing Democrats of excessive government intervention and violating Americans’ free-market rights. Republican lawmakers have stressed that the bill is about more than just cryptocurrency; it is also about the independence of investors and financial institutions.
