(Belgian) Several senators in the United States on Monday urged Fidelity, a large American asset manager, to drop allowing contributors to 401(k) retirement plans to invest funds in bitcoin, in view of the recent FTX platform failure.
“In light of the extraordinary events in the digital asset market, we urge Fidelity to reconsider its decision to allow … participants in 401(k) plans to be exposed to bitcoin,” said Democratic Senator Elizabeth Warren, known for her tough oversight of the banking and finance industry, and two other elected officials, in a letter to Fidelity Investments. “The recent implosion of FTX, a cryptocurrency platform, clearly shows that the cryptocurrency industry is in serious trouble,” the letter further points out. Fidelity is one of the largest managers of 401(k) plans, with 32 million of these retirement plans, whose assets are placed on the financial markets, and in which employers participate in the United States. Last spring, the company announced it would allow customers who contribute to their pensions to build part of their savings in bitcoin. The Ministry of Labor had issued a warning against these investments in cryptocurrencies for pension plans, urging administrators to exercise “extreme caution”. In May, Elizabeth Warren had already opposed Fidelity’s initiative in a letter to the company’s president, Abigail Johnson. The blitzkrieg of cryptocurrency exchange FTX ten days ago shook the virtual asset universe, reignited worries and sent bitcoin crashing. Bitcoin, the star of virtual currencies, was worth $15,623 on Monday at 22:20 GMT (-4%), its lowest level in two years. It was $47,000 at the start of the year and $69,000 at its peak in November 2021. (Belgian)
