Crypto In 401(k)s: Senators Sanders, Warren Letter Warns $14 Trillion At Risk From DOL Proposal
Democratic lawmakers, including Bernie Sanders, Elizabeth Warren, and Bobby Scott, are opposing a Labor Department proposal that could let 401(k) savers invest more broadly in crypto and other alternative assets. They say the rule could put about $14.2 trillion in retirement savings at risk by weakening investor protections and pushing workers into more volatile, complex, and costly investments. They warn that crypto’s sharp price swings, higher fees, and fraud risks could reduce long-term returns and expose savers to major losses. Regulators and the FBI have also cautioned about crypto volatility and scams. The lawmakers say the proposal may not survive a court challenge and could raise conflict-of-interest concerns tied to Trump and the crypto industry. The Trump administration says the change would expand investment choice.
