Maxine Waters urges Labor Dept to pull rule on crypto in 401(k)s

Maxine Waters, a senior Democrat and the ranking member of the U.S. House Financial Services Committee, has urged the Department of Labor to reconsider a proposed rule that would permit cryptocurrency investments in 401(k) retirement plans. According to CoinDesk, Waters submitted an 11-page comment letter arguing that it is contradictory for the department to approve crypto for the retirement funds of ordinary Americans while the Securities and Exchange Commission (SEC) is still developing investor protections to make such assets safe. She stressed that the risks extend beyond the extreme volatility of individual tokens, reflecting what she described as a deteriorating situation across the entire crypto ecosystem, which has seen a collapse in trading activity, developer participation, and user engagement. Waters is considered a likely candidate to return to her former position as chair of the House Financial Services Committee if the Democratic Party performs well in the November elections.