Bitcoin Owner Senator Cynthia Lummis Says People Should Be able to Invest in Crypto for Their Retirement Wallets | Currency News | Financial and business news
Bitcoin supporter Senator Cynthia Lummis said on Tuesday that she would like to see U.S. residents diversify their retirement accounts by being able to include cryptocurrency investments.
Lummis, the first woman from Wyoming to be elected to the Senate, said she supports people investing in cryptocurrencies of their choice, if legally allowed.
“I would like to see cryptocurrency, like bitcoin, be part of a diversified asset allocation used in retirement funds and other opportunities for people to save for the future,” said the Republican senator at CNBC’s financial advisers summit on Tuesday.
“So whether you’re an employee who has a retirement fund – I’d love to see those retirement funds invested in bitcoin and other cryptocurrencies that are good stores of value – but I’d also like to see individuals can use bitcoin and cryptocurrencies of their preference which are secure, which have overcome the obstacles of the fight against money laundering and the law on banking secrecy. “
The Internal Revenue Service considers bitcoin to be property rather than currency for tax purposes. This means that any transaction involving digital currencies will receive the same treatment as sales of stocks and other intangibles.
But incorporating cryptocurrencies into retirement wallets remains a niche practice, as they cannot be included in regular individual retirement accounts. Investors need to set up a special type of IRA that is more actively managed by an account holder rather than a third party service.
Regime sponsors are still unlikely to want to adopt cryptocurrencies into their range of investments, Aaron Potticchen, senior vice president at Alliant Retirement Consulting, told CNBC.
Lummis, who bought her first bitcoin in 2013 for $ 330, revealed that she has 5 bitcoins, currently worth around $ 170,000.
Bitcoin was last trading 2% at $ 34,837 on Wednesday, but is up around 20% so far this year.
Despite the senator’s upbeat support for the digital asset, she said: “I don’t want everyone to put all their money in bitcoin, just like I don’t want everyone to put it in dollars and put it under. a mattress. I like the diversification. “
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