Ali Khawar, a senior official within the administration, told The Wall Street Journal that he fears the move could put the funds of everyday consumers at risk.
The U.S. Labor Department has warned that it has "grave concerns" over Fidelity's plan to allow Americans saving for their retirement to invest in Bitcoin.
Ali Khawar, a senior official within the administration, told The Wall Street Journal that he fears the move could put the funds of everyday consumers at risk.
He warned the newspaper that there's "a lot of hype around 'You have to get in now because you will be left behind otherwise.'"
Fidelity's move means that 23,000 companies will now have the option to add Bitcoin to the menu of investments that their employees can invest in.
Assuming their employer opts in, workers will be able to allocate up to 20% of their 401(k) to Bitcoin — but this could be reduced.
Fidelity, which is America's largest retirement savings provider, defended its new product — telling the WSJ:
"[This] represents the firm’s continued commitment to evolving and broadening its digital assets offerings amidst steadily growing demand for digital assets across investor segments, and we believe that this technology and digital assets will represent a large part of the financial industry’s future."
