Political interference – About ten days ago, the giant Fidelity Investments – manager of $4.2 trillion in assets – announced that it would allow its customers tosave in bitcoins (BTC) for their 401(k) retirement plan. The thing obviously did not please the very anti-crypto Democratic senator at all Elizabeth Warrenwhich urges Fidelity to reconsider its decision.
What risk that Elizabeth Warren does not talk about “risks” with Bitcoin? Zero !
At the end of April, the asset manager Fidelity Investments caused a stir by allowing American savers to contribute up to 20% from their 401(k) retirement savings in bitcoins. On the other hand, the news probably narrowly missed making the US senator choke. Elizabeth Warren.
The latter is sadly known in the cryptosphere for relay the worst anti-Bitcoin clichés. Elizabeth Warren therefore reiterates once again her attacks against the sector, by signing a letter against against Fidelityco-signed by another Democratic senator, Tina Smith.
We might as well warn you right away, in this letter of just over three pages, the word “risks” (of course in the plural) is used no less than 17 times! Here is a small excerpt:
“According to Fidelity, what risks does Bitcoin present for its customers?
– What are the risks specific volatility and loss posed by Bitcoin, and how will Fidelity deal with these risks ?
– Then, what are the risks specific fraud posed by Bitcoin, and how will Fidelity deal with these risks ?
– Finally, what are the risks specific theft issues posed by Bitcoin, and how will Fidelity handle these risks ? »Excerpt from the letter from Democratic Senators Elizabeth Warren and Tina Smith
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A risk of conflict of interest on the part of Fidelity?
It’s okay, you haven’t succumbed to a indigestion “risks”? The senators have in any case insisted on trying to assimilate this word to Bitcoin. Let’s skip over the form, and let’s look at one of the prosecution’s funds: does Fidelity’s decision present a potential conflict of interest?
The giant fund Fidelity is, in fact, enthusiastic for the nascent and innovative cryptocurrency industry, and for distributed ledger technology (DLT). As the letter cites, the manager, or at least its subsidiaries, have set foot in the mining Bitcoin and Ethereum (ETH) from 2017 for example. His serve Fidelity Digital Assetsalso does custody of crypto-assets since 2019.
The problem is that Fidelity in no way imposes its customers to save in Bitcoin. Moreover, the letter itself recalls that, for the moment, “only 2% of employers expressed interest” for adding crypto to their staff’s 401(k) plans. Why make such a story out of it then?
Similarly, Fidelity won’t have any more interest or benefits in offering Bitcoin and cryptos than any other shares and assets that the manager already offers to its clients of 401(k) savings plans. By the way, speaking of which, do you seriously believe that managing $4.2 trillion does not imply having dedicated and efficient teams for the management of “risks”?
As Elizabeth Warren tries to deinvent gunpowder, well aware that the old order she embodies may well be its first victim, realize the importance of not staying out of the Bitcoin revolution. Start accumulating and trading your first BTCs by registering on the FTX reference platform by benefiting from a lifetime discount on your trading fees (affiliate link).