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Longtime Crypto Skeptic Fears For Investors That Put Their Retirement In Crypto

David Gerard, the author of Attack of the 50 Foot Blockchain, believes the crypto market will continue crashing. In an interview with 60 Minutes, Gerard said the crypto market crypto was not a surprise.

He asserted that people cannot get rich for free. Perplexed, Gerard said he thought people would have understood this notion by now. However, he said people always keep hopes of getting an easy way out and end up getting hurt.

Gerard, a renowned crypto critic, acknowledged that some people reap massive rewards from crypto. However, he said many investors end up in a pickle. Although he claims the market crash was inevitable, Gerard expressed his worries about investors that lost their money.

He noted:

We have to think about the real victims, the mums and dads, the grannies who think their retirement should go into crypto. There’s a real human cost here and that’s the ordinary people who get scammed.

According to Gerard, the lack of regulation in the crypto market is especially concerning. According to him, most of the activity in the nascent sector is unregulated. 

Crypto Trying Continues To Find Its Way Into 401(k) Plans

Gerard’s concerns come as crypto companies continue pushing for digital assets to become part of 401(k) retirement plans. Fidelity started offering employees of the 23,000 companies that use its services an option to invest up to 20% of their portfolio in Bitcoin (BTC). Nonetheless, the firms would have to greenlight their employees to embrace this option.

Fidelity’s offering has, however, met strong criticism from US Senators Elizabeth Warren and Tina Smith. In a letter addressed to Fidelity CEO Abigail Johnson, the Senators asked which protective measures Fidelity had in store. Specifically, Warren and Smith inquired about how Fidelity planned to prevent theft, fraud, and loss associated with crypto.

The letter also highlighted potential conflicts of interest. Notably, Fidelity participates in crypto mining and manages crypto investments for its wealthy clients.

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Before Fidelity, leading crypto exchange Coinbase teamed up with ForUsAll to offer crypto investments in 401(k) plans. Unlike Fidelity, this partnership sought to let employees invest up to 5% of their portfolio in crypto. However, this offering also faced setbacks after the Department of Labor (DOL) said it would investigate 401(k) providers that offer crypto investments.

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