U.S. Democrats Urge Withdrawal of Proposal Allowing Cryptocurrency Investments in 401(k) Accounts

U.S. Representative Maxine Waters has demanded the withdrawal of a regulation allowing retirement accounts to invest in cryptocurrencies and other alternative assets. The proposal, unveiled by the Department of Labor in March, grants legal protections to plan sponsors investing in crypto, private equity, real estate, and commodities. Waters criticized the rule as weakening retirement savings protections, warning it could expose investors to greater risks, complexity, and costs while undermining safeguards for long-term savers.