The New York Attorney General (NYAG) has sent a letter to members of the US Congress urging them to prevent changes in legislation and the expansion of the use of digital assets.
In her letter to Congress, Letitia James announced that she is proposing to reject two laws, the recently proposed Retirement Savings Modernization Act and the Financial Freedom Act. Both projects aim to allow investment in digital assets of money from individual retirement accounts (IRAs) and defined contribution plans.
The prosecutor, citing the failure of the FTX exchange to use user funds, listed four main reasons why you should exclude digital assets from IRAs and defined contribution plans:
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The importance of protecting retirement savings over the long term.
The historic duty of Congress to protect the pension funds of US citizens.
Widespread, in her opinion, fraud in the crypto industry and the lack of clear regulatory rules.
Volatility and uncertainty regarding the holding and valuation of digital assets.
On the other hand, the prosecutor explained that there is a difference between digital assets and blockchain technology. James believes that US citizens can buy stakes in publicly traded blockchain-based companies with funds from pension funds.
Recently, US senators asked Fidelity Investments to remove Bitcoin from retirement savings due to the high volatility of the asset.