Janet Yellen advocates the regulation of cryptocurrencies, saying they are a risky alternative for retirement savings.
The Secretary of the Treasury of the United States of America, Janet Yellen, always remains updated regarding the crypto world and the news that it launches to protect the economy of her nation.
In May, she highlighted that the collapse of Terra, which severely impacted the rest of the crypto environment, did not suppose a risk for the US. She had also stated that this Crashdown was a warning to strengthen the regulations over stable coins.
The senator also included another problem regarding digital assets linked to their inclusion in American retirement strategies.
Related to this, Yellen highlighted that digital assets might be a risky alternative to include in the retirement plans of average savers and that Congress addressing the danger would be reasonable.
Yellen answered a question about a statement revealed by Boston-based Fidelity Investments in April by saying it would include a crypto feature in the retirement plans it controls. The Department of Labor has already made clear its opposition to the measure.
In this regard, Yellen highlighted that it would be advantageous for Congress to set up regulative policies and determine which assets could get addressed in tax-advantaged retirement plans, such as 401(k) plans.
On the other hand, Fidelity revealed in April its intention to bring 401(k) with Bitcoin later this year. Savings programs got strongly regulated, so the Treasury secretary and its stance on the new strategy carried out by Fidelity is a common thing. The US Department of Labor has also released a warning statement against holding digital assets in 401(k) accounts, signaling its opposition.
Senator Cynthia Lummis recently argued whether Bitcoin should get added to the 401(k) retirement plan, to which some US employees give a portion of their salaries to their accounts to save funds intended for retirement.
In this regard, she expressed that she thinks that the rejective stance of the Department of Labor about the inclusion of digital assets in retirement savings could be a wrongful move. She debated that Bitcoin could serve as part of a diversified retirement asset allocation and as a house of value.
A smart investment strategy, according to Lummis, mixes currencies that generate short-term profits as well as assets that can keep funds from depreciating. According to her, Bitcoin may be one of the latter, as BTC “really shines” as a store of value.
By: Jenson Nuñez
