"Crypto Retirement Plan" Heavily Criticized by Democrats: Trump Is "Harvesting" American Workers' Pensions
Democratic senators Bernie Sanders (I-VT) and Elizabeth Warren (D-MA), along with Representative Bobby Scott (D-VA), are urging the Labor Department to repeal a proposed rule that would open U.S. retirement savings accounts, such as 401(k)s, to investments in cryptocurrencies like Bitcoin and other alternative assets. The rule, stemming from an August executive order by President Trump, would provide a legal safe harbor for plan fiduciaries offering these volatile assets if they follow a prescribed process.
The lawmakers argue in a 14-page letter that the rule dangerously weakens long-standing "prudent man" standards under the Employee Retirement Income Security Act (ERISA), potentially exposing the $14.2 trillion in 401(k) savings to high-risk, minimally regulated investments. They cite warnings from FINRA about crypto's high volatility and from the FBI about massive cryptocurrency scam losses.
The letter also alleges a conflict of interest, noting that President Trump's adult children manage the family's crypto business, which has reportedly raised billions from digital token sales. They contend the rule change could enrich the Trump family at the expense of workers' retirement security.
In defense, the Trump administration frames the rule as expanding worker choice. Acting Labor Secretary Keith Sonderling stated it ends the department "picking winners and losers," requiring fiduciaries to follow a prudent process. Treasury Secretary Scott Bessent supported it as a step toward the president's "Golden Age."
marsbit15m ago
