Asset Manager Fidelity Asked To Reconsider Its Bitcoin Offerings After FTX Debacle

United States crypto-skeptic senators Elizabeth Warren, Tina Smith, and Richard Durbin have once again called for Fidelity Investments to reconsider offering a Bitcoin (BTC)-linked 401(k) retirement product.

The three senators hinged their premise on the recent fall of FTX in a letter to Fidelity Investments CEO Abigail Johnson on Nov. 21.

“The recent implosion of FTX, a cryptocurrency exchange, has made it abundantly clear the digital asset industry has serious problems,” the senators wrote.

The senators’ letter to the Fidelity CEO was the second in recent months, with the first letter on Jul. 26 demanding an explanation of why Fidelity decided to expose its customers to a Bitcoin 401(k) product to begin with.

Durbin, Smith and Warren also noted that some 32 million Americans and 22,000 U.S. employers use Fidelity as a workplace retirement account and employer-sponsored plan.

The senators added that Fidelity shouldn’t be exposing its customer’s retirement savings to an “unnecessary risk.”

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