Sen. Elizabeth Warren (D-Mass.) said Thursday that President Donald Trump’s decision to allow cryptocurrencies in 401(k) plans could put “hard-earned savings” of Americans at risk.
Warren Labels Crypto ‘Shadowy’ Market
Warren took to X to voice her apprehensions about Trump’s executive orders that push private equity and cryptocurrencies into 401(k) retirement plans.
“These shadowy markets lack strong guardrails to keep your money safe,” the Democratic lawmaker alleged. “We can't let Wall Street gamble with Americans' hard-earned savings.”
Warren, Sanders Allege Conflict Of Interest
The remarks come after Warren and Sen. Bernie Sanders (I-Vt.) led a group of lawmakers to raise concerns about the move in a letter sent to the SEC and the Labor Department.
The legislators quoted the Labor Department’s 2022 guidance that urged plan fiduciaries to exercise “extreme care” before adding a cryptocurrency option to a 401(k) plan
The senators also raised questions about the potential financial benefits the Trump family could reap from this move. They cited reports claiming that the first family gained up to $5 billion in paper wealth from the World Liberty Financial (WLFI) token launch.
The White House and the SEC didn’t immediately return Bezninga’s request for comment.
The Disagreements
The move to open up potentially $40 trillion in retirement savings to digital assets like Bitcoin (CRYPTO: BTC) has become a divisive issue.
Sen. Cynthia Lummis (R-Wyo.) hailed the decision, stating Americans can “secure” their financial futures through digital assets, but economist Peter Schiff warned it could worsen retirement savings shortfalls.
Anthony Pompliano, founder of Professional Capital Management, said that the move opens massive new capital flows to cryptocurrency markets.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
