Senator Cynthia Loomis Believes Bitcoin Should Be Included in US 401(k) Retirement Program
During an online interview with CNBC host Andrew Ross Sorkin, two US senators who introduced a new crypto regulation bill have said that bitcoin is an excellent store of value, and that it should be used to diversify assets in US retirement plans. needed.
Senator vs Department of Labor on BTC
Sorkin asked the opinion of Senators Kirsten Gillibrand and Senator Cynthia Loomis whether bitcoin should really be included in a 401(k) retirement plan, which requires American workers to save part of their salaries in their personal accounts to save for their retirement. is required to be sent.
should #bitcoin Be able to use your retirement fund? @andrewrsorkin asks @senlumis And @sengillibrand, pic.twitter.com/ZGtwarFjR6
— Squawk Box (@SquawkCNBC) 7 June 2022
Sorkin reminded senators that, earlier this year, Fidelity Investments was the first entity to offer bitcoin, the leading cryptocurrency, in its employees’ pension plans (401).[k]) was followed by Anthony Scaramucci’s Skybridge. The founder of this wealth management fund is a crypto supporter, and the fund offers its clients bitcoin as an asset to invest in.
Sorkin recalled that the US Department of Labor then criticized Fidelity’s move, saying it was “a terrible idea.” However, Senators Gillibrand and Loomis here disagree with him.
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“Bitcoin is good for 401k and it shines as store of value”
Senator Loomis responded that he believes the Labor Department is wrong about that. According to Loomis, bitcoin can be used successfully in two ways: as part of a diversified asset allocation for retirement and as a store of value.
Loomis said a reasonable investment strategy includes assets that generate profit in the short term and that prevent the money from depreciating. According to him, bitcoin could be one of the latter, as BTC “really shines” as a store of value.
It’s also some of the toughest currencies to date, the senator said, and that’s why it stands “as a piece of diversified asset allocation for retirement plans.”
Senator Gillibrand agreed with him and emphasized the importance of the crypto bill that he and Loomis introduced.
Crypto will be regulated as commodities and securities
According to this bill, bitcoin, ethereum and other cryptos are defined as “fully decentralized”, which will be treated as commodities and subject to the rule of the CFTC, as well as those that are “subsidiary assets”. such as ADA and SOL, which are among commodities and securities. They will also be regulated by the aforementioned watchdog along with BTC and ETH.
The securities will be overseen by the SEC agency, which is currently continuing its legal battle against Ripple Labs, claiming the XRP token is an unregistered security. This trial is going on since December 2020.
In addition, on June 6, U.Today reported that the agency had asked BNB to see if it was also a security.[बिनेंस एक्सचेंज का मूल टोकन]has started the investigation.
The CNBC report did not specify which coins could fall under the category of securities.
Furthermore, according to the bill, all crypto transactions below $200 will be tax-free.
bipartisan #crypto The overhaul could classify digital assets as commodities. @yalanmui Report: pic.twitter.com/b6TxsivrNJ
— Squawk Box (@SquawkCNBC) 7 June 2022
