US Treasury Secretary Yellen warns that Crypto is ‘very risky’ – not suitable for most pension savers

U.S. Treasury Secretary Janet Yellen warns that crypto is a “very risky investment,” adding that she would not recommend it to most people saving up for retirement. Yellen noted, however, that Congress could limit the type of investment allowed in retirement accounts, including 401 (k) plans.

Janet Yellen about investing in cryptocurrencies for retirement

Whether Americans should be able to put their retirement savings into cryptocurrencies is still hotly debated.

US Treasury Secretary Janet Yellen was asked at a New York Times event on Thursday about Fidelity’s announcement to allow bitcoin as an investment opportunity in 401 (k) plans.


replied Yellen

It is not something I would recommend most people to save up for retirement … For me it is a very risky investment.

Fidelity’s announcement follows a directive issued by the Department of Labor (DOL) that warns administrators of 401 (k) plans to allow cryptocurrencies in pension plans. Fidelity is one of the largest administrators of 401 (k) plans.

Ali Khawar, acting deputy secretary of the DOL Benefits Security Administration, said the Labor ministry was “seriously concerned about what Fidelity has done.” He pointed out that “cryptocurrencies can pose serious risks to retirement savings.”

Finance Minister Yellen also noted on Thursday that Congress could regulate assets that can be included in pension plans such as 401 (k). Commenting on whether Congress should act, Yellen said:

I’m not saying I recommend it, but in my opinion it would be a fair thing.

The Department of Labor’s efforts to prevent Americans from putting crypto in retirement accounts have upset some lawmakers. In response, U.S. Senator Tommy Tuberville (R-AL) introduced the Financial Freedom Act to prohibit DOL “from issuing rules or guidelines that restrict the type of investment that autonomous investors in a 401 (k)) can choose through a broker window. . ” In addition, the Department of Labor has been sued for its crypto-consulting.

Keywords in this story

401k, 401K accounts, 401k plans, cryptocurrency 401k plans, cryptocurrency 401k plans, bitcoin retirement, crypto retirement, cryptocurrency retirement, fidelity, janet yellen, janet yellen crypto, janet yellen crypto, janet retirency, secretary at cryptocurrency, crypto

What do you think of Finance Minister Janet Yellen’s comments? Tell us in the comments section below.

Kevin 200x200 close up

Kevin Helms

An economics student from Austria, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests include Bitcoin security, open source systems, network effects and the intersection between economics and cryptography.

Image credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. This is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or approval of a product, service or business. does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any harm or loss caused or alleged to have been caused by or in connection with the use of or reliance on the content, goods or services mentioned in this article.

Leave a Comment