Senator Lummis is not worried about Bitcoin’s inclusion in 401(k) plans
Senator for the United States and ardent proponent of cryptocurrencies Cynthia Lummis has resisted pressure to abandon her belief that Bitcoin belongs in diverse retirement plans. On December 12, Lummis said in an interview that the crypto winter had not changed her mind on Bitcoin and that she still wanted to see the asset featured in 401(k) retirement plans in the United States.
Lummis has made a notable effort to advance progressive crypto regulation alongside Senator Kirsten Gillibrand and appears to be one of the few publicly crypto-friendly legislators in the United States at the moment.
She claimed that her belief in Bitcoin derives from its limited supply of twenty-one million and that as it gets scarce, its value is bound to shoot up. “I personally believe that because there are only going to be 21 million Bitcoin that are mined, that Bitcoin will go up, a personal belief, just based on its scarcity,” she said
When Lummis first discussed retirement plans back in June 2021, she took a slightly different attitude than he does now. She had supported the inclusion of further particular cryptocurrencies at the time, but it looks that the subsequent FTX fiasco and the crypto winter may have slightly changed her views.
She added that she would like to see people be able to use Bitcoin and other cryptocurrencies of their choice as long as they are secure and comply with the Bank Secrecy Act and anti-money laundering regulations.
Senators like Tina Smith, Elizabeth Warren, and Richard Durbin, on the other hand, have utilised the current market turbulence to restate their demands that Fidelity Investments roll back their BTC-linked 401(k) retirement scheme.
The three senators cited the FTX fiasco as a key factor in their Nov. 21 letter to Fidelity CEO Abigail Johnson asking the company to stop including BTC risk in retirement plans. In reference to the collapse of the cryptocurrency exchange FTX, the letter claimed that it is now quite obvious the digital asset business has “serious problems.” Market players who peddle financial products with little to no transparency include “charismatic wunderkinds, opportunistic fraudsters, and self-declared investment gurus.”
The present global economic slowdown was predicted in a World Bank study, and as a result, central banks are hiking rates at a rate not seen in the previous 50 years. The way that Bitcoin-which was developed in 2009 following the housing crisis of 2007/2008-reacts to the present economic climate and the impending recession will be important to witness.