Ponzi & Scams

Story: Sanders and Warren Push to Block Crypto Rule for 401(k) Plans

By Sydney TheCMO

1 / 14

FINRA, the FBI, and $11 Billion in Losses. The figures they present are hard to ignore. FINRA has already warned that cryptocurrencies have…

2 / 14

The Trump Family and Its $5 Billion in Crypto. Trump's sons manage the family's crypto ventures. Since launching their digital currency, they…

3 / 14

Bernie Sanders and Elizabeth Warren have stepped in. The two Democratic senators are urging the Department of Labor to scrap a rule that would open 401(k) retirement accounts to…

4 / 14

The rule in question was proposed in March. It would allow 401(k) plan managers to offer volatile assets — with cryptocurrencies at the forefront — provided they can demonstrate…

5 / 14

Sanders, Warren, and Bobby Scott — a member of the House Education and Labor Committee — have laid all this out in a 14-page letter addressed to Keith Sonderling, acting…

6 / 14

The figures they present are hard to ignore. FINRA has already warned that cryptocurrencies have experienced volatility levels far exceeding traditional assets.

7 / 14

Americans for Financial Reform, a consumer advocacy group, shares these concerns. Oscar Valdés Viera, the organization's lead analyst, warned against the risk of turning workers'…

8 / 14

And the alleged conflict of interest is the real sticking point.

9 / 14

Related reading: Bitcoin Falls Below $72,000 as Trump's 'Relax' Fails to Calm Markets

10 / 14

The Trump administration, however, is defending the rule tooth and nail. Sonderling states that the rule requires managers to follow a prudent evaluation process before offering…

11 / 14

It's unclear if that will be enough to appease everyone.

12 / 14

The rule would allow managers to presume they meet prudence standards as long as they follow the described process. For Democrats, this goes against decades of legal precedents.

13 / 14

See also: WTW Buys Redefind to Cover Crypto Asset Tracing and Legal Recovery Costs

14 / 14

Consumer groups remain mobilized. So do Democratic lawmakers. Meanwhile, the $14.2 trillion in American 401(k) accounts await to see which direction the Department of Labor will…

The Currency Analytics

Want the full story?