American Lawmakers have asked Fidelity, a financial services firm, to give details about how it plans to address the liabilities involved in utilizing BTC as a retirement savings option before the 18th of this month. The country appears increasingly worried about the idea of allowing individuals to save BTC with the financial company in their 401(k) accounts.
Two members of the legislature, reportedly voiced their worries over the financial services, declared plans to include Bitcoin as one of the options via a letter to the Chief Executive Officer of Fidelity. The senators voiced their concern via a letter on Wednesday.
In the letter, the legislators said that Fidelity’s most recent intentions for BTC has a potential for conflicting interests. However, the letter also observed that Fidelity has a history of trying its hands on digital assets that began with Bitcoin and Ethereum.
The senators observed that Fidelity had started trying its hands specifically on minting Bitcoin and Ethereum, and obtaining wallets on cryptocurrency exchanges, since 2017. Last week’s Tuesday, Fidelity announced that it would allow interested persons to save up to one-fifth of their retirement savings on Bitcoin. The company said it made the decision to suit the demands of many of their customers.
Conversely, the senators battled with Fidelity’s assertion of high-customer demand, mentioning that only 2% of businesses said they were interested in including digital assets as a means of making retirement savings. Additionally, the legislators’ argument highlighted the possibility of liabilities, losses, and financial crimes connected with digital assets.
In their presentation, the legislators made reference to an information from the Department of Labor (DOL) that said that the authority may sue any organizations taking reasonable levels of retirement savings via digital assets. In the DOL’s referenced statement, the authority noted that the instability and speculative nature of digital assets to further buttress their warnings.
The legislators asked Fidelity to explain its risk management intentions over its adoption of Bitcoin in its retirement savings plan. They also requested that Fidelity supplied extra details about the investment charges and how much the company made from minting Bitcoin.
Luxury Brands in the US and Europe Adopt Digital Assets
Meanwhile, high-end consumer products’ manufacturers in the United States have begun purchasing and putting out different cryptocurrencies. One of such companies is Gucci, which announced that it would begin receiving payments in crypto this month in its American stores.
Gucci also added that it intended to extend its crypto payment option to it’s over 100 stores on the North American continent. Another luxury wristwatch producer, Hublot, launched a set of non-fungible tokens for interested buyers, in partnership with another company, recently.
Apart from these, an American luxury gym, Equinox, announced it would start taking payments for it’s yearly membership from current and intending clients who intend paying in digital assets. Equinox reportedly charges a minimum of 1.4 ETH, equivalent to approximately $4K for it’s services.
