US Treasury Secretary Janet Yellen Calls for Crypto Regulation for Being “Very Risky” Option for Retirees

US Treasury Secretary Janet Yellen Calls for Crypto Regulation for Being "Very Risky" Option for Retirees

US Treasury Secretary Janet Yellen Calls for Crypto Regulation for Being "Very Risky" Option for Retirees By DailyBitcoin Editor

Janet Yellen advocates the regulation of cryptocurrencies, saying they are a “very risky” option for retirement savings.

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  • US Treasury Secretary Believes Crypto Are ‘Very Risky’
  • Yellen made special reference to her inclusion in retirement plans
  • He referred to the inclusion of crypto by Fidelity

The Secretary of the Treasury of the United States, Janet Yellen, always remains attentive to the world of cryptocurrencies and the news that it generates, protecting what they may mean for the economy of her country. For example, in May she expressed that the crash of Terra, which affected the rest of the crypto, did not represent a risk for the US She had also said that this collapse was nothing more than a call to regulate stablecoins.

Yesterday he also addressed another topical issue regarding cryptocurrencies, which is especially related to their inclusion in American retirement plans.

In relation to this, Yellen said that cryptocurrency assets are a “very risky” option to include in the retirement plans of average savers, and that it would be reasonable for Congress to address the danger.

“It’s not something I would recommend to most people who are saving for retirement,” Yellen said yesterday at an event organized by the New York Times in Washington. “For me it is a very risky investment.”

Yellen was answering a question about an ad for FidelityInvestments, based in Boston, in April that it would add a crypto option to the retirement plans it manages. The Department of Labor has already signaled its opposition.

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In this regard, Yellen said that it would be reasonable for Congress regulate what assets could be included in tax-advantaged retirement vehicles, such as 401(k) plans.

“I’m not saying I recommend it, but in my opinion it would be reasonable,” said about the congressional action.

It is worth remembering that Fidelity announced in April its intention to offer 401(k) with Bitcoin later this year. Savings programs are heavily regulated, so the Treasury secretary’s stance on Fidelity’s new initiative shouldn’t seem strange, he says. UToday. The US Department of Labor has also issued a warning against placing cryptocurrency in people’s 401(k) accounts, signaling its opposition.

Senator Lummis also thinks

Senator Cynthia Lummis also recently discussed whether Bitcoin it should be included in the 401(k) retirement plan, to which some US employees contribute a portion of their wages to their accounts to save for retirement. On this he commented that he believes that the hostile position of the Department of Labor about the inclusion of cryptocurrencies in retirement savings could be wrong. He maintains that Bitcoin It can be used in two ways: as part of a diversified retirement asset allocation and as a store of value.

A smart investment strategy, according to Lummis, combines assets that generate short-term gains as well as assets that can keep funds from depreciating. According to her, Bitcoin may be one of the latter, since BTC “really shines” as a store of value.

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Sources: Bloomberg, UToday, File, Archive

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WARNING: This is an informative article. DiarioBitcoin is a means of communication, it does not promote, endorse or recommend any investment in particular. It is worth noting that investments in crypto assets are not regulated in some countries. May not be suitable for retail investors as the full amount invested could be lost. Check the laws of your country before investing.

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