Retirement

‘No shortage of passion in the Parisian people’ for PBW amid protests — Animoca Brands CEO

As it hosts Paris Blockchain Week, France’s capital city has seen protests following the government pushing through a bill raising the national retirement age from 62 to 64.

Robby Yung, CEO of metaverse ecosystem developer Animoca Brands, seemed to suggest that, despite the recent attempts to debank crypto and protests on the streets of Paris, confidence in the space was undeterred.

Speaking to Cointelegraph on March 22 at Paris Blockchain Week, Yung said the local government had provided a “warm embrace” for crypto and blockchain enthusiasts amid many overflowing trash bins, protests and burned-out vehicles. France’s capital city has seen massive protests since the government pushed through a bill without a vote in the legislature that would raise the national retirement age from 62 to 64 years old.

“I see no shortage of passion in the Parisian people,” said Yung in reference to both Web3 and the protests.

The Animoca Brands CEO added that there were similarities between the 2008 financial crisis and the recent failures of crypto-friendly institutions, including Silicon Valley Bank and Signature:

“All of that stuff happening out there is why we’re here to begin with […] The reason that we decided that decentralization was a better way to do things was precisely because of our concern as to what might happen in the financial sector, which continues to be borne out.”

Animoca Brands CEO Robby Yung speaking to Cointelegraph’s Joe Hall at Paris Blockchain Week.

Some of the speakers at the Paris event have highlighted some regulators’ attempts to debank the services of crypto firms and address the 2022 market crash. In addition, brands with name recognition, including Gucci, were represented at the conference in what Yung called a positive sign for adoption.

“As the Web3 community, we need to embrace everybody, and to have these big multinational corporations, these major household name brands involved, is a fantastic seal of approval that we’re on to something here,” said the Animoca Brands CEO. “Brands themselves have power: They resonate with consumers, whether it’s gaming brands or handbag and luxury watch brands.”

Related: Paris Blockchain Week 2023: First day of the Summit kicks off

Paris Blockchain Week will be running from March 20 to 24 and feature a variety of speakers from the Web3 and crypto and blockchain space. Cointelegraph team members and staff will be reporting live on the ground to bring readers the latest developments at the event.

Magazine: Best and worst countries for crypto taxes — Plus crypto tax tips

Bitcoin retirement plans elicit caution from regulators

Some investment experts believe adding digital assets to retirement funds could make sense when the market becomes more stable, but not right now.

Even as the crypto market continues to forge an impressive recovery from the 2022 bear market, the industry continues to attract the wrath of regulators worldwide, especially in the United States. Three U.S. financial watchdogs recently issued stern warnings to individuals looking to invest in retirement funds offering exposure to digital assets.

The U.S. Securities and Exchange Commission’s (SEC) Office of Investor Education and Advocacy, the North American Securities Administrators Association and the Financial Industry Regulatory Authority (FINRA) warned investors that individual retirement accounts (IRAs) that include cryptocurrencies could potentially be classified as “securities,” unless they are registered with the SEC or have a valid exemption certificate.

Moreover, in the past year, many policymakers have continued to aim at cryptocurrency investment vehicles, such as retirement accounts, citing the string of insolvencies witnessed last year. For example, New York Attorney General Letitia James has repeatedly called for a ban on all crypto-inclusive contribution plans and IRAs.

Regulators are understandably cautious, with one Canadian teacher’s pension fund, the Ontario Teacher’s Pension Plan, taking a $95 million loss on its substantial stake in the FTX crypto exchange.

However, some prominent crypto proponents in the U.S. Senate, like Wyoming Senator Cynthia Lummis, believe that Bitcoin (BTC) should be a part of 401(k) retirement packages.

Are crypto retirement funds a good idea?

To better understand whether including cryptocurrencies in pension funds makes investment sense, Cointelegraph reached out to Ilan Sterk, CEO of Altshuler Shaham Horizon — an Israeli cryptocurrency custody and trading provider — one of the few crypto firms in the country approved to deal with banks.

According to Sterk, minimal exposure to digital assets can be a good fit for long-term retirement-centric investments. He added, “For pensioners, an investment portfolio can be allocated between various assets like securities, bonds, hedge funds, digital assets and private equity. Blockchain and digital assets are considered a relatively new field but with high utilization and a wide ecosystem, so allocating a conservative portion to such investments might be fruitful.”

Recent: SEC vs. Kraken: A one-off or opening salvo in an assault on crypto?

That said, he does agree with the warnings issued by the SEC and FINRA, especially since they pertain to retirement accounts containing the hard-earned savings of many people. Sterk said that crypto is a “very volatile investment for a retirement account” and, therefore, people investing in such offerings should take the time to understand the inherent risks associated with digital assets. He added:

“I believe that regulators are crucial to organizing new investment fields like digital assets as well as for laying out clear guidelines, especially for pension accounts, so investors won’t find themselves penniless upon reaching retirement.”

In 2021, the Israeli Capital Market, Insurance and Savings Authority published similar guidelines for local institutions — including provident funds and pension funds — telling institutions that should they decide to invest in Bitcoin, they must detail and explain their decision to the regulatory body.

Extreme volatility of crypto

Wade Wang, the founder and CEO of Safeheron — a digital asset self-custody provider that recently integrated its multi-party computation multisignature security solution with MetaMask — told Cointelegraph that it is “not recommended” that retirement funds seeking long-term returns be exposed to cryptocurrencies, at least in the near future. He added:

“Investing in digital assets comes with high uncertainty and severe volatility. So far, any coins or tokens within the crypto landscape are circulated within their own individual markets. The circulation between these different ecosystems, especially traditional ones like pension funds, requires considerably greater development.”

Wang highlighted that crypto should not be viewed differently from other investment forms. As the industry matures and novel Web3 applications emerge, many traditional funds — including family offices and retirement funds — will continue to eye digital assets.

Zoomers wants crypto in their retirement funds

According to a survey conducted by U.S. asset manager Charles Schwab during Q4 2022, almost 50% of zoomers and millennials want to see crypto become a part of their 401(k) retirement plans. Millennials were born in the early 1980s to mid-1990s, while zoomers were born in the mid to late 1990s and early 2010s.

Analysts for Charles Schwab found that 46% of zoomers and 45% of millennials would like to invest in cryptocurrencies as part of their retirement plans. Moreover, the survey found 43% of zoomers and 47% of millennials had already put a portion of their savings into digital assets outside their retirement plans.

Younger investors want a wider range of investment choices, like cryptcurrencies. Source: Charles Schwab

These results lay in stark contrast to another survey conducted by the investment manager, which found that just 31% of Gen X’ers and 11% of boomers — those born anywhere between the mid-1940s to late 1970s — were keen on investing in digital currencies through their 401(k) retirement plans.

Bill to remove roadblocks

On Feb. 15, Alabama Senator Tommy Tuberville announced he would reintroduce the Financial Freedom Act to allow American 401(k) retirement plans to gain cryptocurrency exposure. The bill, first tabled in the Senate in May 2022, seeks to reverse a policy from the U.S. Department of Labor (DOL) directing the type of investments allowed in 401(k) plans, including crypto.

In Tuberville’s words, the bill seeks to prevent the DOL from pursuing enforcement actions for individuals utilizing brokerage windows to invest in digital assets. “The federal government shouldn’t choose winners and losers in the investment game. My bill ensures that everyone who earns a paycheck has the financial freedom to invest in their futures however they see fit,” Tubernille added.

The bill’s co-sponsors include several prominent pro-crypto senators, including Cynthia Lummis, Rick Scott and Mike Braun. In a December 2022 interview, Senator Lummis stated that despite the recent market meltdown, she is still quite comfortable with the idea of Americans incorporating Bitcoin into their pension funds.

Recent: DeFi security: How trustless bridges can help protect users

Similarly, on Feb. 14, Florida Representative Byron Donalds said he wanted to table a bill similar to Tuberville’s in the House of Representatives. Both Donalds and Tuberville are likely to face stiff resistance from members of the Democratic party, as Senator Elizabeth Warren has repeatedly expressed her concerns about crypto being included in 401(k) plans. Senator Roger Marshall also shares a similar stance.

What lies ahead?

Since the beginning of 2022, the DOL has warned pension fund owners about crypto, asking them to exercise extreme caution when dealing with cryptocurrencies, citing the risk of fraud, theft and loss of funds. Other regulators have also adopted similar stances across the globe. As crypto adoption grows, time will tell how legislators come to view this novel asset class, especially from a long-term investment perspective.

US lawmakers reintroduce bill to remove roadblocks for crypto investments in retirement accounts

Four Republican senators have signed on to a bill aimed at barring the U.S. Department of Labor from investigating individuals “using brokerage windows to invest in cryptocurrency.”

Alabama Senator Tommy Tuberville has reintroduced legislation aiming to allow United States 401(k) retirement plans to include exposure to cryptocurrencies.

In a Feb. 15 announcement, Tuberville said the Financial Freedom Act — which he first introduced to the U.S. Senate in May 2022 — aimed to reverse policy from the Department of Labor directing what type of investments were allowed in 401(k) plans, including crypto. According to the senator, the bill would bar the DOL from pursuing enforcement actions for individuals “using brokerage windows to invest in cryptocurrency.”

“The federal government shouldn’t choose winners and losers in the investment game,” said Tuberville. “My bill ensures that everyone who earns a paycheck has the financial freedom to invest in their futures however they see fit.”

Tuberville reported that Senators Cynthia Lummis, Rick Scott and Mike Braun had signed on as cosponsors of the bill. Lummis said in a December 2022 interview — following the crypto market crash and the bankruptcies of major firms including FTX, Voyager Digital and Celsius Network — that she was “very comfortable” with having U.S. investors include Bitcoin (BTC) in their retirement accounts.

Politico reported on Feb. 14 that Florida Representative Byron Donalds planned to introduce an equivalent bill in the House of Representatives on Feb. 17. Donalds and Tuberville, both members of the Republican party, could face opposition from across the aisle — Democratic Senator Elizabeth Warren has previously expressed concerns about Fidelity Investments’ plans to include BTC in 401(k) accounts.

Related: Almost 50% of Gen Z and Millennials want crypto in retirement funds: Survey

The DOL notice from March 2022 warned 401(k) account holders to “exercise extreme care” when dealing with investments in cryptocurrencies, citing the risk of fraud, theft and loss of funds. The U.S. Securities and Exchange Commission’s Office of Investor Education and Advocacy, the North American Securities Administrators Association, and the Financial Industry Regulatory Authority also issued a notice on Feb. 7, warning that self-directed individual retirement accounts may include cryptocurrencies as potentially risky investments.

US financial regulators warn against crypto exposure in retirement accounts

The financial watchdogs targeted self-directed individual retirement accounts with potential exposure to crypto in a warning to investors.

Three financial watchdogs in the United States have issued a warning to investors considering certain individual retirement accounts with exposure to cryptocurrencies.

In a Feb. 7 notice, the United States Securities and Exchange Commission’s Office of Investor Education and Advocacy, the North American Securities Administrators Association, and Financial Industry Regulatory Authority said self-directed individual retirement accounts, or IRAs, may include assets with potential risks, including cryptocurrencies. According to the agencies, some of the aforementioned IRAs could offer exposure to crypto assets that qualify as securities “without SEC registration or a valid exemption from registration” and without providing the information necessary to make informed decisions on investments.

“Some self-directed IRAs may offer investments in ‘crypto assets’ such as ‘virtual currencies,’ ‘coins,’ and ‘tokens,’” the notice said. “Many of the trading platforms for these crypto assets refer to themselves as ‘exchanges,’ which may give investors the misimpression that they have registered with the SEC.”

Many lawmakers and regulators have targeted crypto investments, both in and out of retirement accounts, following a tumultuous year of crypto firms filing for bankruptcy and prominent fraud cases like that of former FTX CEO Sam Bankman-Fried. In November, New York Attorney General Letitia James recommended prohibiting crypto investments in defined contribution plans and IRAs. However, pro-crypto Senator Cynthia Lummis said in December that she would still like to see Bitcoin (BTC) included in 401(k) retirement packages.

Related: Roth IRAs: The ideal long-term cryptocurrency investment?

The uncertainty surrounding which crypto projects are considered securities or where they fall under regulatory guidelines in the U.S. has led to criticism from many companies operating in the market. In December, crypto lending firm Nexo announced plans to gradually cease operations in the United States following 18 months of discussions with regulators.

Roth IRAs: The ideal long-term cryptocurrency investment?

Considering investing in cryptocurrencies for the long run? Roth IRAs and other tax advantages investment vehicles are worth considering.

As the cryptocurrency market matures, more governments throughout the world introduce legislation to tax proceeds from crypto-related activities, with traders often triggering taxable events that can lead to future complications.

Avoiding paying taxes is illegal, but there are legal ways to dodge triggering taxable events while hodling onto one’s cryptocurrency holdings: Roth IRAs. These are individual retirement accounts (IRAs) with a special type of tax-advantaged system.

Using IRAs to avoid triggering taxable events with cryptocurrency investments is a strategy that has been considered for some time, with North American mining and hosting firm Compass Mining offering a solution for BTC users to mine directly to their IRAs last year.

Before diving deeper, it’s important to point out that Roth IRAs are only available in the United States, although other countries often have their own form of tax-advantaged investment vehicles. Often, stocks with significant exposure to Bitcoin — such as MicroStrategy — have to be used as a proxy for some of these vehicles.

What are Roth IRAs?

A Roth IRA is a type of individual retirement account to which investors contribute after-tax earnings. What makes Roth IRAs stand out is that what investors place in these savings accounts can grow tax-free and be withdrawn without any other taxes being owed after they’re aged 59 ½, if the account has been open for at least five years. 

Essentially, a Roth IRA considers that since taxes have been paid on the funds being contributed into the account, investors do not need to pay any further tax as long as they meet the specific conditions outlined above.

Roth IRAs can be funded in various ways beyond regular contributions, which have to be made in cash. Assets permitted into Roth IRA accounts include stocks, exchange-traded funds, money market funds, bonds, mutual funds and cryptocurrencies.

The Internal Revenue Service (IRS) does not allow for direct cryptocurrency contributions into these accounts, but these are various Bitcoin IRA solutions that are designed for investors to save cryptocurrencies in these accounts. It’s worth pointing out that yearly contributions to Roth IRAs are limited based on IRS specifications and that investors can keep Roth IRAs as long as they please, as there are no required minimum distributions.

Is it a good idea to add crypto to a Roth IRA?

Cryptocurrencies are known for being extremely volatile, which means they aren’t for every investor out there. More conservative investors will likely be happier holding bonds, mutual funds and exchange-traded funds, while investors with a larger risk appetite may consider allocating to crypto.

The growth potential of cryptocurrency holdings in a portfolio is enough to lure in investors who believe cryptocurrencies will keep on growing in popularity as the infrastructure around them boosts accessibility and new crypto-related products and services are created. This growth potential, it’s worth pointing out, comes with heightened risk.

As tax-free withdrawals from Roth IRAs require accounts to be at least five years old, cryptocurrency investors looking to take advantage of them should always be prepared to hold onto their funds for a long time.

Chris Kline, co-founder of cryptocurrency IRA platform Bitcoin IRA, told Cointelegraph that there are no tax benefits on contributions to Roth IRA accounts, but there are tax benefits on distributions:

“If you have a longer time horizon in Bitcoin and crypto, a Roth IRA could be an appealing choice for those looking to take advantage of the long-term promise digital assets offer.”

To Kline, cryptocurrencies are going to “disrupt the very fabric of our everyday lives in ways like the internet disrupted communication and email disrupted the post office.” The co-founder of Bitcoin IRA added that while real estate and gold were premier examples of diversification in the past, crypto has “asserted itself as an alternative in the modern economy.”

Recent: The Metaverse is becoming a platform to unite fashion communities

Kline added that cryptocurrencies can offer an “alternative path forward for people of all ages” and that there’s been a surge in interest in investing in crypto assets for diversification.

Kunal Sawhney, CEO of equity research firm Kalkine Group, seems to disagree with Kline’s approach. Speaking to Cointelegraph, Sawhney said that if a person has “spent time and labour to earn money, it should ideally not go into extremely risky assets like cryptocurrencies.”

Otherwise, he added, it “defeats the idea of investing for retirement.” Sawhney cautioned that cryptocurrencies aren’t just Bitcoin (BTC) and that betting on these increases the risk that investors fall prey to Ponzi schemes.

As an investment category, he said, cryptocurrencies “might not be so bad” as these assets may become the “biggest contributor to the overall amount in the Roth IRA when the contributor retires and plans to withdraw.” Once again, their potential outsized performance is weighed against their risk.

For long-term investors expecting these outsized returns, placing cryptocurrencies in a Roth IRA lets them realize their capital gains without getting taxed, although they’ll have to stomach the ups and downs for a while.

Portfolio diversification

The extreme volatility of cryptocurrencies makes them a not-so-easy investment when talking about retirement, with the jury being out on whether including cryptocurrencies in a 401(k) retirement plan is sound financial planning or gambling with the future.

To Sawhney, investors need to have a pre-determined strategy for their Roth IRA. The CEO noted that a 60/40 portfolio, with greater exposure to stocks than to bonds, was “long considered balanced and financially rewarding” but suggested cryptocurrencies are changing things:

“Now that there is an option available to hold relatively the most volatile asset, cryptocurrency, a new strategy, say 50/40/10, might be considered. Here 10% could go to the new asset class comprising cryptos. Investors should have the option to change the allocation share per their risk appetite.”

Recent: Does the Ethereum Merge offer a new destination for institutional investors?

Due diligence, Sawhney concluded, is crucial as Roth IRAs are often “viewed as one of the best investment vehicles for young and low-income earners.”

Speaking to Cointelegraph, Kevin Maloney, interim CEO at crypto retirement account provider iTrustCapital, said that volatility is actually “one of the main reasons why many investors prefer using a Roth IRA or any other type of IRA to invest in crypto.” He added that even day-traders could benefit:

“For those who want to ‘day-trade’ due to the volatility of crypto, an IRA still represents a solid option because they won’t be paying yearly taxes on their gains so long as they aren’t taking distributions.”

Whether investors are looking to add cryptocurrencies to their Roth IRA accounts, it’s important note that crypto assets are only available for these accounts through custodians, which may charge hefty trading fees.

It’s up to every investor to analyze what type of investment vehicle best suits their situation and risk appetite. Roth IRAs may be extremely beneficial for long-term investors, as, since 2014, the IRS has taxed cryptocurrencies as property, and capital gains taxes can be owed on depreciated assets.

The views and opinions expressed do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Worried about inflation’s impact on your retirement savings? Invest in cryptocurrency

The global economy is tumbling, but we might be able to find some hope in cryptocurrencies.

Around the world, personal financial stress is peaking. A recent study in America found that more than three in four people feel anxious about their financial situation. This is seeding anti-risk mentalities and prompting fears around the safety of long-term savings, including retirement funds. 

However, that shouldn’t mean hiding money under the floorboards. Nor should it necessarily mean handing over the reins to a low-growth pension fund, which at current rates of inflation, are likely to be losing value. It means being smarter about assessing all options and diversifying. And that requires freedom.

That’s what Alabama Sen. Tommy Tuberville (R)  was advocating when he proposed the Financial Freedom Act in May, which would permit all Americans with self-directed retirement plans to add cryptocurrency to their 401(k)s — a defined-contribution, personal pension account. It was prompted by a piece of regulatory guidance from the U.S. Department of Labor in March attempting to bar 401(k) accounts from investing in crypto.

Too often, freedom is seen as the enemy of stability, when in fact fear is the enemy of stability. And that’s exactly what the U.S. government’s caginess around alternative assets is stirring up. Much of the media has also been quick to jump on the anti-crypto bandwagon. A quick Google search of the coverage of Fidelity’s announcement that they would soon let participants invest as much as 20 percent of their employer-sponsored 401(k) retirement plan in Bitcoin reveals overwhelming negativity, or at least scepticism.

To compound perceptions, many have been further put off incorporating rockstar assets like cryptocurrencies into their pension portfolios following May’s collapse of the Terra ecosystem. Most people just want to have the option to retire comfortably — they’re not planning on buying a yacht or a seat on Elon Musk’s Starship — and they’re worried that digital assets won’t provide the stability and steady interest they need to build a solid retirement nest egg.

Age does not always equal wisdom

While caution in the crypto space is always advised, completely steering people away from considering digital assets in their retirement portfolio is itself dangerous. It’s discouraging people from accessing what could be the solution to a dying system and pension-eroding inflation.

Because, the truth is, the old ways aren’t a safe bet, either. Traditional pension funds are struggling. All but 12 of America’s 100 largest 401(k) funds have posted double-digit losses so far this year thanks to surging inflation and a turbulent U.S. stock market. At the same time, inflation chips away at purchasing power of cash while interest rates remain eye-wateringly low.

Even the property market is not a “sure thing.” Many are speculating on a housing bubble for reasons that include Chinese property giant Evergrande edging toward default. Property ownership is increasingly seen as a pipedream for younger generations.

Related: Retire early with crypto? Playing with FIRE

It thus becomes clear that clinging purely to the old ways — including traditional financial instruments and an outdated banking system — is not viable for people who want future-proof retirement savings.

Cryptocurrencies are becoming an opportunity for retirement planning

As inflation approaches a 40-year high in the U.S., it is no longer “transitory.” Instability is also becoming a semi-permanent fixture in light of climate change and the global turmoil surrounding Russia’s invasion of Ukraine. It’s hard for anyone to know what the future holds, including pension funds, so people should be free to place their bets where they see fit, including in their own retirement plans.

Stablecoins, for example, can be a prudent addition to a 401(k). It’s just about picking the right kind — one that can store wealth and hedge against the damaging effects of inflation. As an algorithmic stablecoin, Terra was innately vulnerable to speculative attacks thanks to a lack of independent asset backing. Stablecoins backed by physical assets, such as gold, on the other hand, hold enormous potential as vehicles for wealth preservation.

Gold has time and again weathered economic crises far better than stocks, bonds and fiat currencies. In 2021, for example, as the pandemic saw fiat currencies around the world turn volatile, the price of gold sat steadily between $1,700 and $1,950 an ounce, proving both its stability and value.

Taking a wider view, gold has increased in value by more than 500 percent in the years since the gold standard was abolished, with central banks making sure that their reserves remain abundant. But it is only now that gold is digitized and infinitely more accessible, making it easier to buy in fractional amounts and to transact with it. Economist Danielle Di Martino has even noted that gold, historically, is the least correlated asset class in existence with inflation. More than simply offsetting its effects, gold has maintained a positive correlation with rising inflation rates, and achieved an average yearly performance of +10.6 percent over the last 50 years. Gold has performed well in times of high volatility, in bear markets, and even outperformed stock markets at times.

Governments have a role to play in encouraging our economic salvation

Let’s face it. Retirement is a daunting prospect, even more so as it becomes more difficult to find growth in the economic environment, as well as protection and liquidity. Americans looking down the line toward an increasingly distant eventuality are right to think conservative. But they have to think conservative in a way that embraces the future.

Investing in digital gold is the ultimate “future conservative” move, combining the best of both worlds: the historic backing of traditional currencies, and the flexibility and autonomy of decentralised, blockchain-based digital currencies.

Governments need to recognize the potential of these assets and, instead of limiting investor options or scaring them into an anti-change mentality, they should provide cross-border oversight and promote increased transparency, empowering investors to achieve financial freedom by providing a context of safety.

The global economy is evolving toward alternative assets. Retirement wealth cannot be an exception to that. Individuals simply can’t afford to exclude alternative assets from their retirement plans, particularly with inflation already lapping at their hard-earned savings. It’s time for everyone to take control of their wealth and look to better, safer, and fairer alternatives to the status quo.

The opinions expressed are the author’s alone and do not necessarily reflect the views of Cointelegraph. This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice.

Democratic senators chide Fidelity Investments for BTC-exposed retirement funds

Crypto critic Elizabeth Warren and two colleagues write to the Fidelity CEO again to express their displeasure with crypto-exposed 401(k) offerings.

Three United States senators have written to Fidelity Investments CEO Abigail Johnson demanding an explanation for the financial services company’s decision to include Bitcoin-exposed funds in its 401(k) retirement plans. “This decision is immensely troubling,” they wrote.

Democrats Dick Durbin, Elizabeth Warren and Tina Smith sent their letter Tuesday. The letter, which is around a page and a half long, discussed Americans’ retirement savings habits in general terms with minimal statistics but numerous rhetorical flourishes and strings of adjectives. The money American consumers may invest in retirement funds is “hard earned,” for example, and their exposure to the “cryptocurrency casino” is “a bridge too far.” The authors of the letter asked:

“When saving for retirement is already a challenge for so many Americans, why would Fidelity allow those who can save to be exposed to an untested, highly volatile asset like Bitcoin?”

There is no call to action in the letter, aside from “We look forward to your response.”

The senators were objecting to funds Fidelity Investments introduced in March. Warren, who represents Massachusetts, the state in which Fidelity Investments is based, teamed up with Smith to write to Johnson at the beginning of May, sending a detailed and copiously footnoted letter objecting to the inclusion of Bitcoin (BTC) in retirement plans. That letter concluded with a list of questions and set a two-week deadline for a response.

Related: Survey: More than a quarter of U.S. millennials plan to use crypto to fund retirement

Fidelity Investments’ actions were controversial within the government. The Department of Labor released a compliance report ahead of the announcement of Fidelity Investments’ embrace of crypto-exposed retirement funds that promised an “investigative program” aimed at retirement plans that included crypto. That report eventually led to a lawsuit against the department.

Also at the beginning of May, Republican Alabama Senator Tommy Tuberville introduced the Financial Freedom Act to protect investors’ right to include crypto in retirement accounts.