Backed by a private financial institution, the US House legislators have introduced a bill concerning Bitcoin. The contents of the bill deal with adding Bitcoin to the retirement fund and 401K accounts. US House representative members recently presented a new bill that will create legal pretences for allowing companies like Fidelity to add Bitcoin to 401K retirement plans.
The bill was formally presented by Representative Bryon Donalds. The bill postulates that companies that are working on generating big results from the retirement cuts of the employees for generating a good enough 401K return can diversify their investment portfolio using cryptocurrencies like Bitcoin.
The bill is going to be attached to the Senate Financial Freedom Act of 2022, and it uses the same language and legal references. The Senate financial freedom Act was presented by Senator Tommy Tuberville.
US House Wants to Introduce Crypto-friendly Regulations
The regulatory guidance under the US House of Representatives and Senate bills can help the cryptocurrency stakeholders in the United States to have a better regulatory infrastructure. Both bills take their legal guidance issued by the Department of Labor in March.
The bill can create a better legal framework for financial enterprises and commercial investment vehicles for adding cryptocurrencies to 401K accounts and portfolios.
Representative Donalds claimed that Department of Labor feedback is expansive in perspective and can curb the intervention of any centralized regulators coming from Washington.
He also claimed that the Labor Department commentary is great for preserving financial and economic autonomy and providing protection to investors according to the free-market ruling.
At one end, the House of Representatives bill gathered a considerable amount of endorsements from the representatives like David Schweikert, Tom Emmer, Young Kim, and Warren Davidson. However, the success ratio of the bill depended upon the voting results for the Financial Freedom Act in the Senate.
In both cases, Fidelity’s retirement plans are going to have a massive impact on its retirement plans. Fidelity has been trying to add Bitcoin to its 401K investment portfolio since the start of the ongoing year.
Without waiting for regulatory clarity, the financial enterprise has already announced its Digital Assets Accounts for employees in April this year. Thus far, the Democratic Party representatives have opposed the bill, including names like Senator Elizabeth Warren and Senator Tina Smith.
The opposing politicians have also written an open letter to Fidelity management airing issues like financial fraud, excessive losses, and risk of robbery for cryptocurrencies.