Sen. Warren Pushes SEC for Info on Crypto in 401(k) Plans
Senator Elizabeth Warren (D-MA) on Monday wrote a letter to Securities and Exchange Commission (SEC) Chair Paul Atkins requesting information on cryptocurrency assets in pension funds and retirement plans.
The Senator, who is also ranking member of the Senate Banking, Housing, and Urban Affairs Committee, voiced concerns over crypto assets in the savings plans and touched on its potential instability with investor’s retirement savings. An August executive order by President Donald Trump directed the Department of Labor (DOL) and SEC to reexamine former strict guidance on allowing the usage of cryptocurrencies in retirement plans.
“I write to request information regarding the Trump Administration’s Executive Order that endangers investors by clearing the way for pension funds and retirement accounts to hold volatile crypto assets,” wrote Ranking Member Warren.
In her letter, Sen. Warren noted that the Senate Banking Committee is negotiating crypto market structure legislation that would open a “tokenization loophole” for blockchain products to circumvent the SEC’s authority. Combined with Trump’s executive order, this could “dramatically increase risks” to savings, she wrote.
“Given the threats from crypto’s volatility, the market’s lack of transparency, and potential conflicts of interest, I am concerned that the Trump Administration’s decision to allow these risky assets to be part of such critical retirement investments threatens millions of Americans’ retirement security,” she continued.
Sen. Warren asked the SEC to further clarify how it plans to “ensure fair valuation of crypto assets, assess manipulation and deceptive practices in crypto markets, and provide awareness for retail investors.” She requests responses from the SEC by January 27.
Sen. Warren previously demanded responses from recordkeeper Empower in June, over its initiative to offer private market investments in retirement plans. In a written letter, she had asked Empower’s CEO Edmund F. Murphy III to answer questions over the company’s plan to allow retirement savers to invest in private equity and private credit, and how it would ensure investors’ safety. She also asked Empower to respond to a series of questions about the company’s partnerships with private equity firms.
While Murphy would ultimately respond to Sen. Warren in a written letter that cited research from Empower, the ranking member pushed back and called on the CEO to respond to initial inquiries questioning the firm’s involvement with private equity companies.
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with nearly a decade of experience and a passion for telling stories and reporting news. She is originally from Queens, New York, but now resides in Denver, Colorado.