The FTX disaster has politicians and regulators jostling to impose new rules on the crypto sector. This includes Elizabeth Warren, the powerful Democratic senator who is viewed even by her critics as brilliant and principled, but who has an irrational hatred of crypto. On Tuesday, Warren pounced. In a letter, she and two fellow Senate Democrats declared a response to the FTX mess should include...stopping people from owning Bitcoin in their retirement accounts. Huh?
The letter in question—also signed by Sens. Dick Durbin (D-Ill.) and Tina Smith (D-Minn.)—was directed to Fidelity Investments, which holds around $2.4 trillion in 401(k) investments on behalf of its clients, and which recently allowed customers to allocate part of their contributions—which are voluntary and deducted from workers' paychecks—to Bitcoin.
