A large number of financial companies including giants like Fidelity have been working to offer crypto exposure in the 401 (k) retirement plans. U.S. Treasury Secretary Janet Yellen has issued a strong warning on this matter and has asked Congress to intervene.
Yellen said that cryptos become a “very risky” choice as part of the retirement plans for average savers. Speaking at an event organized by the New York Times on Thursday, June 9, Yellen said:
“It’s not something that I would recommend to most people who are saving for their retirement. To me it’s very risky investment.”
Yellen’s response particularly came when asked about Fidelity Investments’ plan of getting crypto exposure to retirement plans. Not only Yellen but even the U.S. Labour Department has objected to this.
The Treasury Secretary further added that it would be better if Congress regulates which assets to include in tax-favored retirement vehicles. Speaking of her view regarding the Congressional action, Yellen said: “I’m not saying I recommend it, but that to my mind would be a reasonable thing”.
