🎧 Listen: In today's episode of The Journal podcast, annetergesen details the move by Fidelity to allow bitcoin in its 401(k) plans, and the blowback that followed
This transcript was prepared by a transcription service. This version may not be in its final form and may be updated.Anne Tergesen : Oh, goodness. Okay. It would be something kind of built for maximum safety, maybe a Volvo. It's not too racey, it doesn't go from 0 to 100 in 2 seconds. It takes its time but it does the job. And it's kind of built to last.
Anne Tergesen : Now with cryptocurrency on the horizon and gaining a place in the 401k menu of a very large plan provider, it feels like all of a sudden, this is potentially a very big change. Anne Tergesen : Abby Johnson has stuck to a lot of the same strategies that made the company preeminent, but she's also taken the company in some surprising new directions. We also saw Abby Johnson start to think about cryptocurrency in a way that a lot of other big companies of Fidelity's size have not. And when she took over, I think she really had a focus on giving this new generation of investors what they're looking for and cryptocurrency was part of that.
Abigail Johnson: In terms of bringing the world along on digital currencies in general, what we are really, from a commercial perspective, putting our efforts around is trying to connect the legacy world with the future of digital currency. Anne Tergesen : It's a small, really tiny little company on the West Coast in California. They specialize in helping small companies that don't have 401ks get set up. And about a year ago, that company grabbed headlines by announcing that it would offer cryptocurrency as part of its 401k menu. And that really sent shockwaves through the retirement industry and also through the regulatory community.
Kate Linebaugh: That opinion was not shared by the regulator. An official from the Department of Labor, Ali Khawar, told Anne that he only learned about Fidelity's plan the day before the announcement. And he also said he has "grave concerns" because he views crypto as speculative. Here he is speaking to Yahoo News.
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