Waters Presses Labor Department on Crypto 401(k) Rule

Rep. Maxine Waters, ranking Democrat on the U.S. House Financial Services Committee, has formally urged the Department of Labor to reconsider a proposed rule allowing cryptocurrency investments in 401(k) retirement plans.

In an 11-page comment letter, Waters argued that permitting digital assets in retirement accounts contradicts the Securities and Exchange Commission's efforts to establish investor protections for the crypto market.

The core tension lies between the Department of Labor, which oversees retirement plan fiduciaries, and the SEC, responsible for investor protection and market integrity. The Department of Labor's proposed rule would allow cryptocurrency investments in 401(k) plans before the SEC has completed its rulemaking on crypto assets.