The US House Committee Chairman Investigates More into the Idea of Crypto Retirement Plans
The head chairperson for the US House Ways and Means Committee is now looking into requesting if the Government Accountability Office (GAO) can investigate cryptocurrencies as a possible investment. This campaign examines whether crypto is viable for various defined contribution (DC) plans, including 401k pension plans.
Richard Neal, Democrat from Massachusetts, sent a letter to the GAO Comptroller Gene L. Dodaro sharing his concerns about investing pension plans into cryptocurrencies. In his letter, he states, "recent announcements from major DC plan providers indicate that many employers who sponsor DC plans will have the option to allow their employees to invest in cryptocurrencies. However, concerns have arisen about the risks to older Americans' retirement security of using retirement accounts to invest in cryptocurrencies due to their volatility and limited oversight."
In reality, crypto as a retirement investment is becoming increasingly popular and the norm among many significant institutions. The Houston Firefighters' Relief and Retirement Fund (HFRRF) now has a $25 million investment in Bitcoin and Ether on its books.
In 2019, two separate Virginia Pension Funds, the Fairfax Police Officers Retirement System (PORS) and Fairfax County Employees' Retirement System (ERS), both took the plunge. With the first fund investing $11 million and the other $10 million in Bitcoin, then in 2021 investing another $50 million into specific cryptocurrencies.
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