Republican senators are proposing a law to allow pension funds to invest in Bitcoin without fear. This bodes well for Fidelity.
401(k) plan
Bitcoin is up 44% since the start of the year. This excellent start to the year could continue thanks to Senator Tommy Tuberville’s bill which should allow Bitcoin to integrate retirement savings.
“The federal government shouldn’t be picking winners and losers”said Tuberville. “My bill guarantees that everyone will have the freedom to invest their retirement savings as they see fit. »
Senators Cynthia Lummis, Rick Scott and Mike Braun are sponsoring the bill. The goal is to clear the way for Fidelity to offer exposure to bitcoin through the 401(k) savings plan.
This initiative is not to the liking of the Democratic senators who have strongly recommended to backtrack. “Any investment strategy based on the principle of catching lightning in a bottle, or motivated by the fear of missing the train is doomed to failure”they stormed in November.
The regulatory fog thickened further in February. Three US financial watchdogs have expressed reservations.
The Securities and Exchange Commission’s Office of Investor Education and Advocacy, the North American Securities Administrators Association and the Financial Industry Regulatory Authority have said that self-directed Individual Retirement Accounts (IRAs) may include risky assets. And especially in cryptocurrencies “without registration with the SEC”…
The Department of Labor also rose up in this report of March 2022. We can read there that employers wishing to increase the exposure of retirement savings to Bitcoin could “to draw legal attention”…
Tommy Tuberville’s bill will clear things up once and for all. Which would bode very well for Bitcoin.
Indeed, the various American pension funds hold 40,000 billion dollars in assets. The main funds are IRAs and those of employers (including 401(k) plans). They together represent more than 63% of all assets:
Investing 5% of retirement funds in bitcoin would raise the floor of bitcoin to $100,000 from $20,000 currently.
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