U.S. Treasury Secretary Janet Yellen warns crypto is a “very risky investment,” 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.
The topic of whether Americans should be able to put retirement savings in cryptocurrencies continues to be hotly debated.
Yellen replied:
It’s not something that I would recommend to most people who are saving for their retirement … To me it’s very risky investment.
Fidelity’s 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.
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:
I’m not saying I recommend it, but that to my mind would be a reasonable thing.
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