Numerous financial firms, including giants like Fidelity, are seeking to invest in Bitcoin and altcoins in their 401(k) retirement plans. US Treasury Secretary Janet Yellen issued a strong warning about this and asked Congress to intervene.
Bitcoin warning from the US Secretary of the Treasury
US Treasury Secretary Janet Yellen said that incorporating crypto assets into the retirement plans of the average saver is a “very risky” choice, and it is reasonable for Congress to address this danger. Said it would be. Yellen said that cryptocurrencies have become a “very risky” choice for average savers as part of their retirement plans. Speaking at an event hosted by the New York Times on Thursday, June 9th, Yellen said:
It’s not something I would recommend to most people saving for retirement. It is a very risky investment in my opinion.
Yellen said it would be reasonable for Congress to regulate what assets can be included in tax-advantaged retirement vehicles such as 401(k) plans. Yellen’s response came when specifically asked about Fidelity Investments’ plan to provide crypto exposure to retirement plans. As we reported as Kriptokoin.com, not only Yellen, but even the US Department of Labor objected to this. The U.S. Treasury Secretary also added that it would be better for Congress to regulate which assets are included in tax-advantaged retirement vehicles. Speaking about her view on the Congressional action, Yellen said, “I’m not saying I recommend it, but I think it would be a reasonable thing to do.”
Gemini’s retirement accounts hacked
Earlier this year, crypto exchange Gemini faced a major security breach that compromised $36 million in investor funds set in retirement accounts. The IRA Financial Trust, a platform that manages retirement and retirement accounts, recently sued Gemini, saying the crypto exchange is not taking adequate action to protect investors’ crypto assets. According to the press release, the following statements are included:
The lawsuit further states that Gemini failed to freeze accounts in sufficient time immediately after the incident and that criminals, customers, and clients, after the IRA notifies Gemini claims to allow them to continue moving funds from their accounts on Gemini exchange.
Although Gemini has denied the allegations, the question arises that greater action needs to be taken in this regard. Currently, Bitcoin is changing hands at $30,103, down 0.8 percent. The cryptocurrency, which is in the first place with a market value of 573 billion dollars, has lost 1.2 percent in the past 7 days.
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