HomeCryptoBitcoinFidelity, Bitcoin pension funds worry senators

Fidelity, Bitcoin pension funds worry senators

In a letter to Abigail Johnson, CEO of Fidelity, Senators Elizabeth Warren of Massachusetts and Tina Smith of Minnesota expressed great concern about the decision to add Bitcoin to pension funds.

US senators against Fidelity’s Bitcoin pension funds

fidelity bitcoin btc
According to the two senators, Fidelity’s Bitcoin pension funds are too risky

Just a few days after the announcement by Fidelity Investment group that it will openly add Bitcoin to the investment plans of its pension plans, the decision is already creating turmoil in the American political world, which has always been very critical of the world of cryptocurrencies.

One of the American politicians most critical of the crypto sector is undoubtedly Senator Elizabeth Warren, who has already made several bills in recent months to regulate and limit their spread in the United States. 

The Democratic senator and her political colleague Tina Smith of Minnesota have raised questions about the recent decision by the investment company Fidelity to allow investors to include BTC in their pension plans. In a letter to the company’s CEO, Abigal Johnson, they argue that cryptocurrencies could be too risky an investment for retirement savers.

In the letter dated Wednesday, the two Democratic senators also said that Fidelity might have potential conflicts of interest in its decision to open up cryptocurrency investments for its pension funds. 

Possible conflicts of interest on the part of Fidelity

The letter asked for information on the extent to which those potential conflicts might have influenced the decision made. The letter argues that the company has long been involved in investments related to cryptocurrencies and Bitcoin mining.

In their letter, the two senators ask the company to reconsider such a risky decision for the savings of its customers, considering that until now the response would have been very limited.

The two senators write that:

“Despite a lack of demand for this option — only 2% of employers expressed interest in adding cryptocurrency to their 401(k) menu – Fidelity has decided to move full speed ahead with supporting Bitcoin investments.”

The letter has so far not received a response from the company’s top management, but it seems very unlikely that Fidelity, which seems to have been betting on cryptocurrencies for some time now, will revisit its decision.

Vincenzo Cacioppoli
Vincenzo Cacioppoli
Vincenzo was born in Genova but lived most of his life in Milan. He has a degree in political science. He is a journalist, blogger, writer, and marketing and digital advertising expert. After a long experience in traditional marketing, he started working with the web and digital advertising in 2011, creating a company called Le enfants. Passionate about the web and innovation, in 2018 he started exploring the topics related to blockchain technology and cryptocurrencies. Independent cryptocurrency trader since March 2018, he now collaborates with companies in the sector as a content marketing specialist. In his blog. mediateccando.blogspot.com, he has long been primarily focused on blockchain, which he considers to be the greatest technological innovation after the Internet. His first book about blockchain and fintech is scheduled for release in November.