U.S. senators called on Fidelity to explain the presence of bitcoin in pension plans


A group of U.S. senators wrote a letter to Fidelity Investments CEO Abigail Johnson demanding that he explain the decision to include bitcoin as an option in 401(k) retirement savings accounts.

The management company had intended to add a similar option this summer. The option would become available to employees of the 23,000 companies that use Fidelity to manage their $2.7 trillion retirement plans.

Democratic Representatives Dick Durbin, Elizabeth Warren and Tina Smith stressed in a statement that the money earned came to citizens with "a lot of hard work" to invest in a "cryptocurrency casino."

    "The decision is hugely troubling. When retirement savings are already an issue for so many Americans, why is Fidelity allowing [...] to take the risk of an untested, highly volatile and unregulated asset like bitcoin?" they wrote.

The message did not contain a ban or threats.

Speaking to CoinDesk, company representatives said they had postponed the product launch until the fall. They stressed that they were in close dialogue with lawmakers.

Recall that in April 2022 Warren compared cryptocurrens to the U.S. mortgage crisis.

A month later, Republican Senator Tommy Tuberville of Alabama introduced a bill allowing U.S. citizens to accumulate cryptocurrency in 401(k) retirement savings accounts.

Earlier, the U.S. Department of Labor reported "serious concerns" about the Fidelity Investments initiative.

In 2020, U.S. retirement plans with investments in the first cryptocurrency were offered by DAiM, as well as Bitwage with Gemini.