Democrats say DOL 401(k) proposal risks $14.2 trillion savings
Congressional Democrats are not happy with a new Department of Labor proposal that would let people invest in cryptocurrencies and private equity through their 401(k) retirement plans.
Senators Bernie Sanders, Elizabeth Warren, and House education and workforce committee ranking member Bobby Scott of Virginia say this move could put $14.2 trillion in retirement savings at risk, remove important protections for investors, raise fees, and leave workers exposed to unpredictable investments.
Lawmakers cite crypto risks, administration defends
The lawmakers pointed out how unstable crypto can be, like Trump's meme coin dropping from over $75 per token at his inauguration to just $2.
They also noted over $11 billion was lost to crypto fraud last year, according to the FBI.
Plus, they flagged possible conflicts of interest since Trump's family potentially raised as much as $5 billion with their own digital currency.
The Trump administration says the proposal would give workers more investment choices and freedom.