According to the Treasury Secretary, funds that hold crypto currencies are not something I recommend to savers for retirement. On Thursday, Treasury Secretary Janet Yellen warned against including Bitcoin or other cryptocurrencies into retirement plans. She called them a “very risky and dangerous investment”.
Yellen made the comments at a New York Times Washington event, to answer a question about Fidelity’s April announcement that it will allow workers to save up to 20% from their retirement funds in Bitcoin.
She said, “It’s not something I would recommend to most people saving for retirement.” It’s a risky investment for me.
Fidelity’s decision to allow Bitcoin in retirement accounts has been opposed by the U.S. Labor Department. It stated that it had “grave concerns”. House Republicans tried to preserve the option last month with a bill which would prohibit a federal ban crypto retirement savings.
Yellen stated that Thursday’s event was a “legitimate” one if Congress decides to apply rules for retirement plans with favorable tax terms.
She stated that tax laws have given taxpayers the chance to save in tax-advantaged manners. “If Congress wanted to be involved in legislating this area, and say, “We’ve given tax incentives for 401(k),s and retirement plans, but we want to regulate how that savings can take place,” that would be legit. It’s not something I recommend.
Yellen and crypto
Over the years, Yellen has had a mixed attitude towards crypto. Famously stating that she wasn’t a fan of Bitcoin in 2018, she recently admitted that the technology had some benefits, including innovation.
After the Terra stablecoin UTS’s meltdown she stated that crypto does not pose a systemic risk for the financial system. However, requested that Congress pass stablecoin legislation before the end of the year.
