US Rep. Byron Donalds (R-FL) has reintroduced the House companion of the Financial Freedom Act. This legislation is aimed at Biden’s Department of Labor and would restrict the type of investments that self-directed 401(k) account investors can choose to invest in through a brokerage window, taking another step to ensure financial freedom.
Back in March of 2022, regulatory guidance released by the Employee Benefits Security Administration that attempted to bar 401(k) investors from investing in cryptocurrency and undermines the ability of 401(k) plans to offer brokerage windows, which give retirement plan participants the ability to personally control how their assets are invested.
This guidance made it possible for employers and investment firms to be subject to DOL investigation and enforcement actions should they allow individuals using brokerage windows to invest in cryptocurrency. Donalds' legislation would counter this government action in a big way.
Although this issue may not be the most hot-button headline in mainstream media, Rep. Donalds' legislation would empower retirement savers to invest as they see fit and ensure that plan sponsors and financial firms are not punished for allowing investors to exercise financial freedom.
"In a far-reaching and sweeping endeavor to centralize power in Washington, the Biden administration is now attempting to dictate how the American people invest their hard-earned money," said Rep. Donalds. "This administration, as well as any other government entity, lacks the authority to direct the financial future of America’s investors. This unprecedented maneuver infringes on the founding principles of economic liberty and free markets. To stand up against this gross example of government overreach, I am proud to support Senator Tuberville’s effort in the Senate to protect American investors from unelected Washington bureaucrats."
Earlier this month, US Senator Tommy Tuberville (R-AL) introduced identical legislation in the US Senate.