Richard Neal, the chairman of the House Ways and Means Committee, has asked a federal watchdog to investigate the growing trend of retirement-savings programs that offer cryptocurrency investments.
In a letter to the Government Accountability Office, Massachusetts Democrat Richard Neal expressed concern about the absence of regulation for crypto investments, which he believes could jeopardize retirees’ savings if they invest in such assets.
“Concerns have arisen about the risks to older Americans’ retirement security of using retirement accounts to invest in cryptocurrencies due to their volatility and limited oversight,” Neal said in a letter released Wednesday.
Neal requested information from the GAO on which types of employers are currently offering cryptocurrency investments in tax-advantaged accounts like 401(k) plans. He also wants to know how plan sponsors decide cryptocurrency valuations and fees, as well as any investment safeguards.
The recent market events have brought to light the possible risk of investing in cryptocurrency. Stock prices have plummeted as the Federal Reserve boosted interest rates in order to combat rising inflation. Crypto legislation, or the absence of such, has become a source of bipartisan disagreement on Capitol Hill.
Senators Cynthia Lummis, a Wyoming Republican, and Kirsten Gillibrand, a New York Democrat, issued a crypto regulatory bill last week that has been hailed as pro-industry, and have stated that Bitcoin should be included in retirement plans in the United States.
In a recent interview with CNBC, Lummis suggested that putting Bitcoin in a 401(k) as part of a diverse portfolio is a “wonderful” concept.
Other congressmen, including Sherrod Brown, the chairman of the Senate Banking Committee, have been considerably more critical of the sector. Brown has expressed optimism that the Securities and Exchange Commission will take greater steps to regulate cryptocurrency. The Labor Department has advised against investing in cryptocurrency with retirement funds.
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