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Friday, December 2, 2022

Florida Rep. Donalds introduces Financial Freedom Act companion bill in the House

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Rep. Byron Donalds, a Florida Republican, launched the Financial Freedom Act into the United States House of Representatives on Friday to forestall the U.S. Department of Labor from limiting the kinds of investments that may be included in Americans’ self-directed 401(okay) retirement plans. The bill is the companion to Alabama Sen. Tommy Tuberville’s May 5 Senate bill.

The Financial Freedom Act was launched as a response to a U.S. Department of Labor (DOL) compliance report dated March 10 that raised objections to the inclusion of cryptocurrencies in 401(okay) retirement plans. That report warned the division’s Employee Benefits Security Administration “expects to conduct an investigative program aimed at plans that offer participant investments in cryptocurrencies and related products, and to take appropriate action to protect the interests of plan participants and beneficiaries with respect to these investments.”

The DOL report elicited a response from monetary companies big Fidelity Investments objecting to what it noticed as unclear language and positions that strayed from the intent of the legislation that created the 401(okay) program. It requested the DOL make clear the report or withdraw it. Two weeks later, Fidelity joined a number of smaller financial services firms in providing Bitcoin to 401(okay) plan holders.

Related: Sen. Warren asks Fidelity to address the risks to put Bitcoin in 401(k)s

Tuberville replied in an editorial on CNBC earlier than the introduction of his bill, “Whether or not you believe in the long-term economic prospects of cryptocurrency, the choice of what you invest your retirement savings in should be yours — not that of the government.”

In a tweeted press launch saying his bill’s introduction, Donalds acknowledged that the DOL was proscribing traders’ decisions for his or her retirement accounts, and characterised the Biden administration as mounting “a far-reaching and sweeping endeavor to centralize power in Washington” via the DOL report.