Alabama Senator Tommy Tuberville has introduced legislation that would make it possible for 401(k) retirement plans in the United States to incorporate exposure to cryptocurrency investments.

In an announcement made on February 15, Tuberville asserted that the Financial Freedom Act, which he had initially introduced to the United States Senate in May 2022, was intended to reverse Labor Department policy that indicated what types of investments were allowed in 401(k). ) plans, including cryptocurrency investments. Tuberville had initially introduced the bill. The senator claims that the proposed legislation would prevent the Department of Labor from initiating enforcement proceedings against those who “use brokerage windows to invest in bitcoin.”

According to Tuberville, the federal government should stay out of the business of picking winners and losers in the investment game. “By passing my legislation, I will ensure that everyone who receives a salary will have the monetary freedom to invest in their future in the way they see fit.”

Tuberville shared the news that Senators Cynthia Lummis, Rick Scott, and Mike Braun had come forward to support the legislation and became co-sponsors. Following the collapse of the cryptocurrency market and the bankruptcy of major companies such as FTX, Voyager Digital and the Celsius Network, Lummis stated in an interview that she was “very comfortable” with the idea of ​​American investors including Bitcoin (BTC) in their retirement. accounts. The interview took place in December 2022.

On February 14, Politico published an article stating that Florida Representative Byron Donalds intended to propose a measure of the same name in the House of Representatives on February 17. Donalds and Tuberville, both members of the Republican Party, could run into resistance from the Democratic side of the aisle. Democratic Senator Elizabeth Warren has in the past expressed reservations about Fidelity Investments’ ambitions to integrate bitcoin into 401(k) accounts.

The notice issued by the DOL in March 2022 warned 401(k) holders to “exercise extreme care” when dealing with cryptocurrency investments. The letter cited the possibility of fraud, theft and loss of assets. On February 7, the United States Securities and Exchange Commission (SEC) Office of Investor Education and Advocacy, the North American Securities Administrators Association (NASAA), and the Financial Industry Regulatory Authority ( FINRA) issued an advisory. which issued a warning that self-directed individual retirement accounts may list cryptocurrencies as potentially risky investments.