Lawmakers argue a proposed rule easing crypto access in retirement plans risks retiree savings and weakens fiduciary standards.
Senators Bernie Sanders and Elizabeth Warren urged the Labor Department to withdraw a proposal allowing cryptocurrencies and alternative assets in 401(k) plans. The lawmakers called the rule harmful to workers and inconsistent with existing regulations in a 14-page letter to Acting Labor Secretary Keith Sonderling.
The proposal, introduced in March, would permit fiduciaries to offer volatile assets like Bitcoin if they consider certain factors, though critics argue it presumes prudence rather than requiring it. The letter, co-signed by Rep. Bobby Scott, warned the rule could expose retirees to excessive risk while benefiting crypto products tied to political figures.
Sanders and Warren contended the policy undermines fiduciary protections and could conflict with statutory requirements. The Labor Department has not yet responded to the letter.