WASHINGTON - Last week, Congressman Byron Donalds (R-FL) reintroduced the House companion of the Financial Freedom Act, which prohibits President Biden’s Department of Labor from restricting the type of investments that self-directed 401(k) account investors can choose to invest in through a brokerage window.
Co-sponsors of this bill includes Representatives Davidson (R-OH), Cloud (R-TX), Schweikert (R-AZ), Emmer (R-MN), and Kim (R-CA).
“In a far-reaching and sweeping endeavor to centralize power in Washington, the Biden administration is now attempting to dictate how the American people invest their hard-earned money,” said Rep. Donalds. “This administration, as well as any other government entity, lacks the authority to direct the financial future of America’s investors. This unprecedented maneuver infringes on the founding principles of economic liberty and free markets. To stand up against this gross example of government overreach, I am proud to support Senator Tuberville’s effort in the Senate to protect American investors from unelected Washington bureaucrats."
"We’re proud to support the Financial Freedom Act, providing consumers greater choice in their retirement savings, including cryptocurrency and digital assets. Crypto allows individuals to take control of their financial future, and we will continue working with policymakers to support legislation that empowers this innovative technology and allows all Americans to benefit from it." – The Blockchain Association.
“We are appreciative of Congressman Donalds’ re-introduction of the House-companion of the Financial Freedom Act of 2023. If there are lessons to be learned from the last year, one is that it is crucial for policymakers to set rules of the road for the digital asset marketplace and guardrails for individual investors that both protect them and encourage access to alternative investment vehicles, including appropriate digital assets. The Financial Freedom Act of 2023 ensures that all investors with individual, self-directed investment accounts can choose investment options to diversify their investment portfolio, while also establishing appropriate policies that create certainty and clarity for the digital asset industry. We thank Congressman Donalds for his leadership and look forward to working with him and co-sponsors through the legislative process.” - Chamber of Digital Commerce
BACKGROUND:
The Financial Freedom Act is in response to the March 2022 regulatory guidance released by the Employee Benefits Security Administration, an agency inside of the U.S. Department of Labor (DOL). The guidance attempts to bar 401(k) investors from investing in cryptocurrency and undermines the ability of 401(k) plans to offer brokerage windows, which give retirement plan participants the ability to personally control how their assets are invested. The guidance threatened that employers and investment firms could be subject to a DOL investigation and enforcement actions should they allow individuals using brokerage windows to invest in cryptocurrency. This legislation would empower retirement savers to invest as they see fit and ensure that plan sponsors and financial firms are not punished for allowing investors to exercise financial freedom.
On February 15, 2023, Senator Tommy Tuberville (R-AL) reintroduced identical legislation in the United States Senate.
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