The Financial Freedom Act would prevent the Labor Department from restricting investment options.
A member of the U.S. House of Representatives has introduced a bill that would allow Americans to put Bitcoin in their retirement plans. The bill was introduced by Republican Florida Rep. Byron Donalds, who put forth the bill in response to U.S. Department of Labor regulatory guidance released in March. This guidance recommends against permitting cryptocurrency in 401(k)s.
Republican California Rep. Young Kim issued her support for the bill.
“The government has no business controlling how Americans spend or save their hard-earned money,” Kim tweeted. “That’s why I’m proud to join [Byron Donalds] to introduce the Financial Freedom Act to protect retirement savers’ ability to make their own investment choices.”
Democrat lawmakers have blasted investment firms which have offered Bitcoin as an investment options in 401(k)s. Democrat Massachusetts Senator Elizabeth Warren called Fidelity Investment’s decision to offer Bitcoin a “risky and speculative gamble.”
One could argue this bill is a step by Republicans like Donalds and Kim to defend firms such as Fidelity. Donalds has argued the bill is not so much about cryptocurrency, but about restricting Washington’s power over American citizens.
“In a far-reaching and sweeping endeavor to centralize power in Washington, the Biden administration is now attempting to dictate how the American people invest their hard-earned money,” Donalds said. “This administration, as well as any other government entity, lacks the authority to direct the financial future of America’s investors.”
The bill has received overwhelming support from the crypto community.