A group of four senators have supported the bill, which would permit investments in crypto from retirement accounts.
US Senator Tommy Tuberville is reintroducing the Financial Freedom Act in an effort to overturn the current Department of Labor (DOL) policy and thwart any future regulatory guidance that restricts the kinds of investments that self-directed 401(k) account holders can choose. The new bill aims to allow investment in crypto from brokerage accounts and other retirement plans without any interference from other authorities.
“Meddling in 401(k) investments through overregulation restrains financial growth and restricts personal liberty. The federal government shouldn’t choose winners and losers in the investment game. Bureaucrats have no business telling hard working Americans how to manage their savings accounts, “said Tuberville, indicating that he supported complete liberty in choosing investment avenues for American citizens. He further said the Financial Freedom Act would ensure everyone who earned a paycheck had the financial freedom to invest their retirement savings in whatever way they wanted to.
The bill was also supported by Senators Mike Braun, Cynthia Lummis and Rick Scott. Cynthia Lummis had voiced her support earlier for investors and retirement accounts having investments in crypto. But all US lawmakers do not agree with the proposal, with Senator Elizabeth Warren opposing any investments in crypto through 401(k) accounts.
Authorities in the US had cautioned earlier for investments in crypto, though no such regulation had banned the same. But, an agency of the US Department of Labor (DOL) barred investments in crypto through 401(k) accounts in 2022. Tuberville’s bill aims to reverse the order and allow more freedom for account holders to choose their investments.