Fidelity’s retirement Bitcoin plan getting backslash from Labor Department

A senior administrator in the U.S. Labor Department shared his point of view on the negative part of Fidelity’s proposed retirement funds including bitcoin.

A few days ago, Fidelity Investments proposed an idea to introduce Bitcoin and some other cryptocurrencies in the retirement savings account holders’ under 401(k) services. Fidelity Investments stated that first, they will get a response and support for the same from their clients, after that, they will introduce Bitcoin as a choice for retirement savings account holders. 

On 28 April, The Wall Street Journal published a report on the interview with Ali Khawar, acting assistant secretary of the Employee Benefits Security Administration. In the interview, Ali shared his point of view on this plan of Fidelity to include Bitcoin.

Ali’s division works inside the Labor Department to oversee company-affiliated retirement plans. Division considered crypto assets as speculative assets. In the interview, Ali also said that there is a lot of hype about cryptocurrencies and people getting emotional force to get in the investment in the speculative assets.

“There is “a lot of hype around, you have to get in now because you will be left behind otherwise,” Ali said.

Mr. Ali said that they already knew about the Bitcoin introduction plan of Fidelity investments in 401(k) services, which is under use by 23,000 companies. 

Uncertain regulation and high volatility fear 

No doubt the few leading companies like Microstrategy dominantly supported the initiative of Fidelity investments to include Bitcoin in 401(k) services but the majority of the big companies don’t think that it is going to be a better option for the employees to have bitcoin, thanks to the unclear regulatory framework and high volatility in the prices of Bitcoin. 

In this initial phase, Bitcoin is in the hands of less than 5% of the population of the world, and also behind this thing rules and regulations are under development. So in this situation, the majority of the big companies are skeptical about the future of the crypto industry. 

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