US Representative Maxine Waters Calls for Withdrawal of Proposal Allowing 401(k) Investment in Digital Assets

CoinFeed June 27 news, according to CoinDesk, US House Democratic Representative Maxine Waters submitted an 11-page comment letter to the US Department of Labor, calling for the withdrawal of a proposal that would allow 401(k) retirement plans to invest in alternative assets, including private equity, private credit, real estate, commodities, and digital assets. Waters stated: 'It is inherently contradictory for the Department of Labor to on one hand endorse digital assets as appropriate for ordinary Americans' retirement savings, while on the other hand the Securities and Exchange Commission (SEC) is still building investor protection mechanisms designed to safeguard ordinary investors' safe investment in these assets. The risks extend not only to the volatility of individual tokens—though that volatility is indeed significant—but reflect a pervasive deterioration across the entire digital asset ecosystem, with trading activity, developer engagement, and user participation all declining sharply.'