New York Attorney's Office opposes investment in cryptocurrencies from pension funds

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New York Attorney General(NYAG) sent a letter to members of the US Congress urging them to prevent changes in legislation and the expansion of the use of digital assets.

In her letter to Congressmen, Letitia JamesLetitia James announced that she is proposing to defeat two pieces of legislation - the recently proposed Retirement Savings Modernization Act and the Financial Freedom Act. Both projects aim to allow money from individual retirement accounts (IRAs) and defined contribution plans to be invested in digital assets.

Prosecutor citing no usebankrupt exchange FTX listed four main reasons to exclude digital assets from IRAs and defined contribution plans:

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1. The importance of protecting your retirement savings over the long term.&nbsp;

2. Congress has a historic responsibility to protect the pension funds of U.S. citizens.&nbsp;

3. In her opinion, fraud and the lack of clear regulatory rules are widespread in the crypto industry.&nbsp;

4. Volatility&nbsp;and uncertainty&nbsp;in relation to the storage and valuation of digital assets.

On the other hand, the prosecutor explained thatThere is a difference between digital assets and blockchain technology. James believes that US citizens could buy shares in publicly traded blockchain companies using pension funds.

Recently, American senators appealed to Fidelity Investments with a demand to exclude Bitcoin from pension savings due to the high volatility of the asset.