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U.S. Treasury Secretary Janet Yellen warns crypto is a \u201cvery risky investment,\u201d adding that she would not recommend it to most people who are saving for retirement. However, Yellen noted that Congress could restrict the type of investments allowed in retirement accounts, including 401(k) plans. <\/strong><\/p>\n The topic of whether Americans should be able to put retirement savings in cryptocurrencies continues to be hotly debated.<\/p>\n U.S. Treasury Secretary Janet Yellen was asked Thursday at an event organized by the New York Times about Fidelity\u2019s announcement<\/a> to allow bitcoin as an investment option in 401(k) plans.<\/p>\n Yellen replied:<\/p>\n It\u2019s not something that I would recommend to most people who are saving for their retirement \u2026 To me it\u2019s very risky investment.<\/p>\n<\/blockquote>\n Fidelity\u2019s announcement followed a guidance issued by the Labor Department (DOL) warning 401(k) plan administrators about allowing cryptocurrencies in retirement plans. Fidelity is one of the biggest 401(k) plan administrators.<\/p>\n Ali Khawar, Acting Assistant Secretary of the DOL\u2019s Employee Benefits Security Administration, said the Labor Department has \u201cgrave concerns with what Fidelity has done.\u201d He stressed<\/a>, \u201ccryptocurrencies can present serious risks to retirement savings.\u201d<\/p>\n Treasury Secretary Yellen also noted Thursday that Congress could regulate what assets could be included in retirement plans like 401(k). Commenting on whether Congress should take action, Yellen clarified:<\/p>\n I\u2019m not saying I recommend it, but that to my mind would be a reasonable thing.<\/p>\n<\/blockquote>\n The Labor Department\u2019s efforts to restrict Americans from putting crypto in retirement accounts have upset some lawmakers. In response, U.S. Senator Tommy Tuberville (R-AL) introduced the Financial Freedom Act<\/a> to prohibit the DOL \u201cfrom issuing a regulation or guidance that limits the type of investments that self-directed 401(k) account investors can choose through a brokerage window.\u201d Furthermore, the Labor Department has been sued<\/a> over its crypto guidance.<\/p>\nJanet Yellen on Investing in Cryptocurrencies for Retirement<\/h2>\n
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