‘Mama Yellen has spoken out, warning Americans not to be‘ choked ’in old age.’
United States (US) Treasury Secretary Janet Yellen warns that crypto investments are too risky for retirement savings plans.
This was mentioned by Yellen at an event hosted by the New York Times in Washington, involving the investment of a 401 (k) plan for U.S. retirement savings.
For your information, a 401 (k) plan is a retirement savings plan offered by US employers to savers such as the Employees Provident Fund (EPF) retirement savings scheme in Malaysia.
Following records, Fidelity Investments of Boston previously introduced a crypto option to retirement plans that has been strongly opposed by the U.S. Department of Labor.
According to Yellen’s statement, she does not recommend most people to use crypto as their retirement investment because it is allegedly too risky.
This is because the volatile crypto market environment coupled with the absence of a specific framework to control and supervise it has left it vulnerable to significant volatility risks.
This can be seen with the recent TerraUST (USDC) crash incident which sparked panic so that some investors suffered huge losses, besides calling for regulations involving stablecoin.
In the meantime, Yellen also said it has been the responsibility of Congress to address and regulate the assets that can be included in the 401 (k) plan investment.
He commented that it was reasonable for Congress to take this matter seriously even though he did not fully recommend such implementation.
