Fidelity should reconsider allowing retail clients exposure to bitcoin in their retirement accounts in light of the FTX collapse, said three Democratic Senators in a letter on Monday.
The U.S. based financial services firm said in April that it wanted to allow investors to put bitcoin in their 401(k)s. Fidelity’s retirement accounts are big business: The company had an estimated $2.4 trillion in 401(k) assets in 2020, or more than a third of the total U.S. market at that time, according to research firm Cerulli Associates.
The Senators – Richard Durbin (D-Ill.), Elizabeth Warren (D-Mass.), and Tina Smith (D-Minn.) – had previously expressed their trepidation over the plan in July, and the Department of Labor had similar concerns in April.
“The ill-advised, deceptive, and potentially illegal actions of a few have a direct impact on the valuation of bitcoin and other digital assets,” this latest letter read.
Already deep in a bear market, bitcoin (BTC) has fallen even further since the FTX collapse earlier this month, touching a two-year low below $15,500 on Monday. The price has bounced to $16,100 at press time.
Fidelity was contacted by CoinDesk.
Read more: Dick Durbin Joins US Senators Criticizing Fidelity’s Plan to Include Bitcoin in 401(k) Plans
