The Financial Freedom Act would preserve the ability of retirement savers to invest their 401(k) funds as they see fit – including investments in cryptocurrency
WASHINGTON – U.S. Senator Tommy Tuberville (R-AL) today introduced the Financial Freedom Act, legislation to prohibit the U.S. Department of Labor (DOL) from issuing a regulation or guidance that limits the type of investments that self-directed 401(k) account investors can choose through a brokerage window.
“Folks work for decades, live within their means, and invest wisely so they can retire comfortably,” said Senator Tuberville. “Now, the Biden administration has taken it upon itself to dictate what assets are viewed worthy of retirement investment, taking the decision away from individual investors by issuing regulatory guidance targeting cryptocurrency. This is government overreach at its finest. The government has no business standing in the way of retirement savers who want to make their own investment choices. When you’ve earned your paycheck, how you invest your money should be your decision. My legislation makes sure that is the case.”
The Financial Freedom Act is in response to March 10th regulatory guidance released by the Employee Benefits Security Administration, an agency inside of U.S. Department of Labor (DOL). The guidance attempts to bar 401(k) investors from investing in cryptocurrency and undermines the ability of 401(k) plans to offer brokerage windows, which give retirement plan participants the ability to personally control how their assets are invested. The guidance threatened that employers and investment firms could be subject to a DOL investigation and enforcement actions should they allow individuals using brokerage windows to invest in cryptocurrency. Senator Tuberville’s legislation would empower retirement savers to invest as they see fit and ensure that plan sponsors and financial firms are not punished for allowing investors to exercise financial freedom.
Senator Tuberville discussed the issue and announced his legislation in an op-ed to CNBC. Click here to read more.
Senator Tommy Tuberville represents Alabama in the United States Senate and is a member of the Senate Armed Services, Agriculture, Veterans’ Affairs, and HELP Committees.