Crypto In 401(k)s: Senators Sanders, Warren Letter Warns $14 Trillion At Risk From DOL Proposal
Democrats in Congress are pressing back against a US Department of Labor (DOL) proposal that could significantly expand how Americans can use 401(k) retirement accounts—particularly by allowing allocations to crypto assets. In a letter shared with The Guardian, Senator Bernie Sanders, Senator Elizabeth Warren, and House education and workforce committee ranking member Bobby Scott of Virginia said the proposal would place an estimated $14.2 trillion in 401(k) savings at risk. They also warned that the change likely would not survive a court challenge. The Fight Over Crypto Access In Retirement Plans According to the letter, the proposal would “strip long-held investor protections from retirement savers” and encourage “more risky, complex, and expensive investments.” The lawmakers called it harmful to American workers, pointing to the way these alternative assets can behave during market stress. They argue that extreme price swings are not a hypothetical risk but a known feature of the