US politicians come up with bill for bitcoin in pension plan

Last Updated: 30 September 2022

Three Republican politicians draft bill for bitcoin in pension plans

Bitcoin in retirement plans

The proposal is called the Retirement Savings Modernisation Act. It is designed to allow investment managers to offer bitcoin and other cryptocurrencies in their 401(k) plans.

This idea comes from the top hat of Senator Pat Toomey of the Senate Banking Committee, Senator Tim Scott and Member of the House of Representatives Peter Meijer.

The proposed bill creates an amendment to the Employee Retirement Income Security Act of 1974. It adds a classification, allowing new assets to be offered.

The document adds “digital assets” to the list of “covered investments”.

Equal treatment

Republican Toomey provides some more clarification on the new bill:

“Our legislation will allow the millions of US savers who have invested in ‘defined contribution plans’ to increase their retirement savings by gaining access to the same (…) alternative assets currently available to savers with unfunded retirement plans.”

Moreover, Toomey suggests that he plans to introduce another bill later by which he wants to encourage retirement savings through tax breaks.

It is a relevant issue in America. Since Fidelity announced that it wants to offer bitcoin in 401(k) retirement plans, up to a maximum of 20% of the value of these savings, there has been a stir.

Both among supporters and opponents. Among others, Elizabeth Warren as well as the state Labor Department expressed doubts, while other senators were already drafting a bill to prevent the possible banning of this kind of service.

This earlier bill was introduced by Republican Byron Donalds, and received support from colleagues Warren Davidson, Young Kim, David Schweikert and Tom Emmer.

MicroStrategy announced several months ago that it will offer Fidelity’s service to its employees.

Author

  • Ivan came across the topic of cryptocurrencies in early 2016 and, as an author and enthusiast, has been intensively involved with the topics of cryptocurrencies, blockchain and STOs ever since.

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