Crypto is used in more and more places a legal asset class, despite the fact that even now the government still looks at it with suspicion. According to many people in the United States, their government is far too slow to implement proper regulation. With a new plan for pensions, that too will be changed.
Bitcoin finally in 401k’s?
In the United States House of Representatives, a bill submitted with which residents of the US Bitcoin (BTC) and other cryptocurrencies into their 401k. 401Ks are pension plans that are connected to an employer. Unlike a typical European pension fund, Americans can decide for themselves what they want to put in their 401k pension plan. crypto was not yet possible, but it will be if this bill is implemented.
The proposal was submitted by elector Byron Donalds, who represents the state of Florida. This Southern state is very progressive when it comes to crypto regulations. The mayor gets paid in bitcoin and in Miami Recently, a huge statue inspired by Bitcoin has been erected. However, other states and the country as a whole are now in favor of proper regulation. That means that there is a good chance that you will soon be able to put Bitcoin in your pension pot in the US.
Important step bitcoin adoption
401k’s are very important for the American system, because there is a lot of money involved. According to Wikipedia there was about USD 6.4 trillion in 401k’s in 2019. In April, we wrote that the giant asset manager Fidelity wanted to add Bitcoin to the 401k retirement plans the company offers for Americans. But then the government didn’t think this was such a good plan. The Ministry of Employment believed that the risks are enormous if people put their pension pot in a ‘speculative asset’.
It seems that the government is now taking cryptocurrencies very seriously. Treasury Secretary Janet Yellen even vented a neutral stance on crypto in March. Before that, she was quite negative and believed that the market could pose a threat to financial stability.