Senator Warren Pushes to Rescind Crypto 401(k) Rule

Senator Warren Urges Labor Department to Rescind Rule Allowing Crypto in 401(k) plans 1 hour ago By Boluwatife Adeyemi Boluwatife Adeyemi Senior Journalist Boluwatife Adeyemi is a well-experienced crypto news writer and editor with a focus on macro topics, crypto policy and regulation and the intersection between DeFi and TradFi. He has a knack for simplifying the most technical concepts and making them easy for crypto newbies to understand. Boluwatife is also a lawyer, who holds a law degree from the University of Ibadan. He also holds a certification in Digital Marketing. Away from writing, he is an avid basketball lover, a traveler, and a part-time degen. Read full bio Why Trust CoinGape CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy , our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information. Highlights Senator Elizabeth Warren and three ranking Democrats have urged the DOL to scrap crypto's inclusion. They argue that the inclusion of crypto could cause major losses to American workers. These Democrats also called out President Trump out over his conflict of interest. AD Save up to 20% on crypto swaps in 1 click Senators Elizabeth Warren and Bernie Sanders, along with Rep. Robert Scott, are pushing the Labor Department to scrap the rule that allows crypto in 401(k) plans. The ranking Democrats also took a swing at U.S. President Donald Trump over his conflict of interest tied to his involvement in the crypto industry. Ad Ad Senator Elizabeth Warren Pushes To Scrap Crypto In 401(k) Plans In a press release, the ranking members announced they had sent a letter to the Department of Labor urging it to rescind its proposal to allow crypto and other alternative assets in 401(k) plans. Warren sent the letter in her capacity as ranking member on the Senate Banking Committee. The Democrats argued that allowing crypto into these retirement plans compounds the problem of exposing seniors to major losses and financial instability, noting that federal efforts to expand retirement income should prioritize cost-effectiveness, stability, and safety. Warren and the other ranking members pointed out that the Labor Department's proposal opens up an estimated $14.2 trillion in workers' retirement savings to crypto and other alternative investments. "These investments have more expensive fees and are more complex, opaque, and volatile than traditional 401(k) plans—exposing seniors to greater financial risk," they said. As CoinGape reported, the White House approved the inclusion of Bitcoin and crypto assets in 401(k) retirement plans earlier this year. The Labor Department now has to make an official decision on whether to allow retirement funds to flow into crypto and alternative assets. Ad Ad Lawmakers Call Out Trump's Crypto Involvement Warren and the other ranking members flagged Trump's involvement in crypto, along with what they described as his and his family's conflict of interest. "In the midst of these egregious conflicts, the DOL's proposed rule has the potential to boost the President's bottom line at the expense of ordinary workers and retirees," they said. The president's crypto ties remain a sticking point between Democrats and Republicans, even as lawmakers negotiate to pass the CLARITY Act. The CLARITY Act has already advanced to the S