U.S. Democratic Lawmakers Oppose Labor Department Proposal to Expand 401(k) Crypto Investments

According to The Guardian, U.S. Democratic lawmakers opposed a Labor Department proposal on June 2 to expand 401(k) investment options to include high-risk crypto assets, citing concerns that $14.2 trillion in retirement savings could face volatile exposure and regulatory uncertainty.

The lawmakers cited data from Finra and FBI showing crypto investment fraud complaints exceeded $11 billion in losses during 2025, highlighting heightened fraud risks within the asset class.

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