Republican Senator Tommy Tuberville from Alabama has unveiled a new bill he calls the Financial Freedom Act to allow Americans to add cryptocurrency to their 401(k) retirement savings plan unencumbered by regulatory guidance.
The new bill is Tuberville’s response to the United States Department of Labor’s (DOL) push to potentially keep crypto out of 401(k) investment plans due to its perceived potential for risk to investors. As Cointelegraph previously reported, the DOL said employees who choose to invest in crypto through their 401(k) could attract legal attention.
In an op-ed for CNBC on Thursday, Senator Tuberville stated:
“The Federal Government has no business interfering with the ability of American workers to invest their 401(k) plan savings as they see fit.”
He said the DOL’s March 10 policy change against the use of brokerage windows by employees to self-direct their income investments is “inconsistent with longstanding practice.”
NEW BILL ALERT: I just introduced the #FinancialFreedomAct, allowing retirement savers to invest their 401(k) funds as they see fit.
The government should not be in the business of telling retirement savers how they can invest their money.https://t.co/6LGtpxquOW
— Coach Tommy Tuberville (@SenTuberville) May 5, 2022
Brokerage windows let 401(k) investors take control of what investments their account invests in rather than accepting what their employer’s broker chooses for them. The Senator continued:
“The agency’s new guidance ends this tradition of economic empowerment in favor of Big-Brother government…