WASHINGTON, D.C. — Today, Congressman Byron Donalds (R-FL) introduced the House companion of the Financial Freedom Act of 2022, 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.
“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."
“Folks work for decades, live within their means, and invest wisely so they can retire comfortably,” said Senator Tuberville. “Now, the Biden administration has taken it upon itself to dictate what assets are viewed worthy of retirement investment, taking the decision away from individual investors by issuing regulatory guidance targeting cryptocurrency. This is government overreach at its finest. The government has no business standing in the way of retirement savers who want to make their own investment choices. When you’ve earned your paycheck, how you invest your money should be your decision. Our legislation makes sure that is the case.”
“We’re proud to support the Financial Freedom Act of 2022, 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,” Kristin Smith, Executive Director, Blockchain Association.
“We are pleased with Congressman Donalds' introduction of the House-companion of the "Financial Freedom Act of 2022.” It is crucial that individual investors have the ability to access the investment vehicles and financial markets that enable them to build a strong financial future. Individual investors are increasingly savvy, and with growing interest and adoption of alternative investment vehicles, including appropriate digital assets, this legislation would ensure that all investors with individual, self-directed investment accounts can choose investment options to diversify their investment portfolio. We thank Congressman Donalds for his leadership and look forward to working with him and cosponsors in the legislative process." Cody Carbone, Chamber of Digital Commerce.
“When planning for their retirement, Americans deserve to have a say in where and how their income is invested. The Biden Administration, which is currently overseeing its own self-inflicted economic crisis, believes they know better and are attempting to restrict Americans from investing their personal 401(k)s in digital assets. We applaud Congressman Donalds’ efforts to ensure Americans retain control over their personal finances and have the ability to invest their hard earned income as they see fit.” - Garrett Bess, VP of Heritage Action.
Original co-sponsors of this legislation include: Representatives Warren Davidson (OH-08), Young Kim (CA-39), David Schweikert (AZ-06), and Tom Emmer (MN-06).
BACKGROUND:
The Financial Freedom Act is in response to March 10th 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 May 5, 2022, Senator Tommy Tuberville (R-AL) introduced identical legislation in the United States Senate.
This legislation can be read in its entirety here.
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