Overview
- Elizabeth Warren and Bernie Sanders led a letter to SEC Chair Paul Atkins and Labor Secretary Lori Chavez-DeRemer calling the policy "dangerous" and warning it could jeopardize Americans’ retirement savings.
- The senators asked whether regulators have studied retail investor risks, if the Labor Department plans to weaken fiduciary due-diligence rules, and whether any inquiry has assessed possible profits to the Trump family.
- They cited a GAO study finding crypto lacks cash flow and is far more volatile than equities, with Bitcoin roughly four times and Solana about twelve times as volatile as the S&P 500 from 2021 to 2023.
- The letter follows President Trump’s executive order encouraging retirement plans to embrace crypto and the Labor Department’s rescission of prior guidance that urged extreme caution on adding such options.
- Republican backers led by Rep. French Hill defended the policy as expanding access for savers, while reports referenced by Democrats allege the Trump family saw large gains from digital-asset ventures, including the WLFI token.