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Fidelity is rolling out Bitcoin investing for 401(k) plans

Fidelity will soon begin allowing eligible individuals to secure a 401 (k) portion of Bitcoin, the company announced on Tuesday. Employees will only receive the option if your employer signs the option, which Fidelity says will begin in mid-2022.

While Fidelity did not specify how much staff could dedicate to cryptocurrency to release Wall Street Journal states that employees can choose to save up to 20 percent on their Bitcoin pension fund. Dave Gray, Fidelity’s head of workplace retirement payments and devices, also told WSJ that Fidelity plans to add support to other cryptocurrencies at some point in the future.

“As a digital asset leader, we are proud to be the first to offer bitcoin access providers in the 401 (k) s primary queue which reflects our commitment to meeting their changing needs. and a firm commitment to blockchain technology for the future of the financial industry, ”Gray said.

According to Fidelity, the commercial intelligence company MicroStrategy is the first to announce the acquisition of the Bitcoin pension fund. The company, led by Bitcoin supporter Michael Saylor, acquired it $ 250 million in Bitcoin by 2020 continues to buy cryptocurrency as part of its financial strategy. However, the Securities and Exchange Commission (SEC) opposes the way MicroStrategy calculated its Bitcoin assets in one of the SEC documents last year. According to BloombergMicroStrategy used non-GAAP estimatesor revenue collection methods that are not based on the Accepted General Accounting Principles (GAAP), to account for its digital assets.

This was not the first MicroStrategy of the SEC – 2000, The SEC settled with Saylor and other officials for $ 11 million passed allegations of civil account fraudclaims that the company “exaggerated its revenue and revenue” after MicroStrategy appeared June 1998 to March 2000. Managers paid the destruction of $ 10 million and $ 350,000 civil fines for each of them, without them ” acknowledge or deny the Commission’s claims.

Confidence may face some setbacks with its new launch. Last month, the U.S. Department of Labor Warning fiduciaries against the provision of an option to save cryptocurrency retirement “in an effort to protect the retirement savings of US workers,” citing that the type of investment presented “significant risks and challenges to participants in retirement accounts, including major risks fraud. Theft and loss. ”President Joe Biden also signed an executive order aimed at pushing more crypto laws into the United States.