Democrats oppose Trump officials’ effort to include crypto in 401(k) plans
Democrats are opposing a proposal by the US Department of Labor to allow cryptocurrency investments in 401(k) plans. They argue that this change would expose workers to greater financial risks and undermine long-held investor protections. The proposal has drawn criticism for potentially benefiting the crypto industry while putting retirement savings at risk.
- ▪Democrats, including Senator Bernie Sanders and Senator Elizabeth Warren, argue that the proposal would expose $14.2 trillion of retirement savings to volatile assets.
- ▪The Financial Industry Regulation Authority warns that crypto investments are significantly more volatile than traditional assets.
- ▪Consumer advocates claim the rule could turn retirement savings into a Ponzi-like scheme benefiting the crypto industry.
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Democrat Bobby Scott, the ranking member of the House education and workforce committee. Photograph: Bloomberg/Getty ImagesView image in fullscreenDemocrat Bobby Scott, the ranking member of the House education and workforce committee. Photograph: Bloomberg/Getty ImagesUS newsDemocrats oppose Trump officials’ effort to include crypto in 401(k) plansChange backed by labor department would expose workers to greater financial risk, letter shared with Guardian saysMichael SainatoTue 2 Jun 2026 08.00 EDTLast modified on Tue 2 Jun 2026 08.01 EDTSharePrefer the Guardian on GoogleCongressional Democrats are strongly opposing a US Department of Labor proposal that would allow 401(k) investments to include cryptocurrency, private credit and private equity assets, arguing the change will expose…
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