Rep. Maxine Waters Calls for Withdrawal of 401(k) Digital Asset Investment Proposal

According to Coindesk, on June 27, Rep. Maxine Waters submitted an 11-page comment letter to the U.S. Department of Labor requesting withdrawal of a proposal allowing 401(k) retirement plans to invest in alternative assets, including private equity, private credit, real estate, commodities, and digital assets.

Waters argued that the Labor Department's approval of digital assets for mainstream retirement savings contradicts the Securities and Exchange Commission's ongoing efforts to build investor protections for these assets. She cited widespread concerns including token volatility and broader ecosystem deterioration, noting declines in trading activity, developer participation, and user engagement across the digital asset space.