U.S. House Democrat, who may soon run key committee, condemns crypto in 401(k)s
Key takeaways
- Waters filed a detailed, 11-page comment letter with the department this week, requesting that the idea be withdrawn.
- "The hazard is not confined to the volatility of individual tokens, severe as that is.
- Waters, who previously wielded the committee gavel when Democrats last held power, may return to chair the panel if her party wins the majority in the U.S.
Representative Maxine Waters, a key Democrat, opposes the Labor Department's proposal for crypto in retirement accounts. (Pete Marovich/Getty Images)Summary Show As the U.S. Department of Labor seeks to implement a plan from President Donald Trump to expand 401(k) retirement accounts to alternative investments, including crypto, a key member of the House of Representatives is asking the department to think again.Maxine Waters, the senior Democrat on the House Financial Services Committee and possible future chair, submitted an 11-page comment later requesting withdrawal of the proposal.U.S. Representative Maxine Waters may soon return to the helm of the House Financial Services Committee if Democrats perform as expected in the November elections, and she's asking that the Department of Labor back away from a proposal that would encourage the managers of 401(k) retirement plans to offer alternative investments, including cryptocurrency.
In March, the Labor Department proposed a rule to implement what President Donald Trump had ordered: that people's 401(k) accounts be open to investments in private equity, private credit, real estate, commodities and digital assets. Waters filed a detailed, 11-page comment letter with the department this week, requesting that the idea be withdrawn.
"It is incoherent for the department to bless digital assets as suitable for the retirement savings of everyday Americans while the [Securities and Exchange Commission] is still building the investor-protection regime intended to make those same assets safe for ordinary investors," Waters argued in the letter. "The hazard is not confined to the volatility of individual tokens, severe as that is. It reflects a broader deterioration across the digital‑asset ecosystem, where trading activity, developer engagement, and user participation have collapsed."