Fidelity, one of the largest retirement account corporations in the world, made the announcement a few months ago that it was going to permit consumers to invest some of their retirement savings in digital currencies such as bitcoin and Ethereum.
The senators are rubbed the wrong way by fidelity.
As soon as they heard the news, many traders and investors went into overdrive. This would unquestionably make all crypto legitimate and accepted in mainstream society, but it also irritated a lot of people, particularly democratic senators. They ridiculed the notion that money that is generally utilized when one is old, infirm, or unable to work should be placed in an asset class that they thought to be speculative, hazardous, and untrustworthy, and they took great issue with Fidelity and its most recent offerings.
Elizabeth Warren of Massachusetts, Richard Durbin of Illinois, and Tina Smith of Minnesota are three of the senators who are particularly worried about this issue (this should come as no surprise). Everyone has come together to write a letter, which they have then sent to Fidelity, inquiring about the state of mind of the corporation and pleading with them to reconsider their decision as quickly as they can.
This is what the letter says:
Fidelity, as one of the leading providers of 401(k) plans, (must be aware of) the hazardous position that retirement savings are in across the United States. The median balance for 401(k) funds is only $33,472, despite the fact that the average 401(k) account has a value of $129,157. Because people in the United States are living longer than they ever have before, it is obvious that a significant number of retirees are at risk of outliving their savings during their golden years… This raises the following question: in light of the fact that retirement planning is already difficult for such a large number of Americans, why would Fidelity allow its customers who are able to save money to be exposed to an unproven, extremely volatile commodity such as bitcoin? The fact that Fidelity is acknowledging that it is aware of the dangers associated with investing in bitcoin and digital assets while simultaneously stating on its website that there are risks associated with investing in bitcoin and planning to cap the bitcoin exposure of plan participants at 20 percent is perhaps the most troubling aspect of the situation.
Dave Gray, who is in charge of the retirement offerings in the workplace for Fidelity, responded to the letter by saying the following:
There is a growing interest on the part of plan sponsors for vehicles that make it possible for them to provide their employees with access to digital assets in defined-contribution plans, and in turn, there is a growing interest on the part of individuals who are interested in incorporating cryptocurrencies into their long-term investment strategies.
Do You Think That This Is the Right Time?
It is impossible to deny that Fidelity is moving in a direction that is innovative, but there is also some cause for concern that the crypto world is continuing its downward spiral, and as a result, it is possible that right now was not the best time to offer retirees the opportunity to invest in cryptocurrencies.
For example, the value of Bitcoin has decreased by more than 60 percent over the course of the past few months, going from approximately $68,000 to approximately $23,000 at the time of this writing. Additionally, the valuation of the cryptocurrency market as a whole has decreased by close to $2 trillion.