Topic: Is a ban on Retirees Cypto Account a fair deal? - page 3. (Read 469 times)

I think it is important for every pensioners to know the areas that his pension savings is invested. Pension fund administrators should be able to educate their clients about their investment platforms and give them the opportunity to choose the sectors they want their funds to be invested. If the pension managers are investing in cryptocurrencies then these pensioners should be able to understand the risk that is involved and they should be given the privilege to choose if they want their funds to be invested in cryptocurrencies or not.

An outright ban is not the solution because the crypto space is very profitable sector. These retirees fund managers can genuinely make money from Bitcoin since pension is a long time investment. Considering the problems that some reputable exchanges are going through currently, there is need to supervise or regulate the activities of this pension managers. The government should enact sound policies to discourage them or bar from investing in some of these crypto Ponzi and get-rich-quick schemes. Some of these pension managers engage in reckless and risky crypto investment without considering the consequences. 
       

if the ban is approved.. then no chance of a ETF or institutional level investments

because pension portfolios invest in literally all things stocks, bonds, shares, commodities..
so banning crypto from those markets as a "product" institutional level portfolio managers cant invest in. means bitcoin remains on the fringes and not mainstreamed.

this latest round of backlash is not about the bitcoin price volatility. its actually sparked by the investment in COMPANIES that manage crypto assets, where things like ETF is unregulated and so not protected by any government financial insurance system

the real solution is not to ban it.
but to ban then licence/permit it. meaning that to get a licence/permit to offer a product to investment plans, financial businesses offering crypto backed collateral products like an ETF share has to meet certain regulations..

I would say it is a sane approach toward the safety and security of the funds! Retirement funds are different than any other form of investment. It has to be safe yet must provide a market-linked return. So I would support this cause!

Crypto assets are extremely volatile in nature. Young people who have time in hand, can surely invest in cryptos if they are able to get in and get out at a right time. That's the basis of crypto investment. Investors need to be extremely agile in nature. Retirement funds are usually not handled this way. So it's a very high-risk investment for retirement funds. 

Recently, news came out of Canada related to 95 million dollars of loss from FTX collapse. Crypto market has already seen a lot of collapses considering it is a relatively new type of investment. So it's better to keep for those people whose risk appetite is high.

Read here: https://www.reuters.com/technology/ontario-pension-says-any-loss-ftx-investment-have-limited-impact-2022-11-10/

This is a simple attack on liberalism and freedom. If the retiree has their sanity intact and can easily say that they want their funds to be turned fully into Shiba or any other shitcoin then they can, it's their own choice. It doesn't matter if it is a good decision or not, that is not the point of this, it is about being able to do what you want with your money. They are not doing anything illegal that hurts other people either, it's their own money and if they want to buy bitcoin with it then they can do it and nobody should be able to stop them. To say "its dangerous, we shouldn't allow them" is a breach of their freedom.

I have always thought that the management of retirement accounts should be very conservative as any significant loss could take years to recover, and if you are at the end of your career or you simply cannot work anymore then you are never getting that money back, so in principle I am not against the ban, however if they are banning bitcoin and other crypto then I hope they do the same with the many other financial instruments which are also very risky as a way to protect the retirement funds of workers.

New York Attorney General Letitia James in the bid to protect retirees from the dangers of investing in Crypto currencies, digital assets, digital tokens and digital coins has egged on  Congress to pass a law prohibiting crypto investments in retirement accounts.

Her point of concern is on the Individual retirement accounts(IRAs) and defined contribution plans, like 410(K0 plans and 457 plans for government workers, which has been the investment option for millions of Hardworking Americans after retirement. She sighted the recent development in financial institution where Bitcoin became an investment option in 410(k) plans, and other financial institutions expected to follow suit. With the recent downtimes in the crypto market and the market turbulence, Attorney General James  emphasised on the protection of workers' retirement funds and save them from the risk associated with cryptocurrencies.

Most of this retirees know absolutely nothing about how this digital assets work. The just trust this investment plans to make the right decision for them. Attorney General James is only been protective of her citizens to save them from the downtimes because the only depend on pensions for survival as such risking them on assets the can't control themselves can result to sudden death and heart failures. Because they will have to wait till the market becomes favourable to start making profit on their investments.

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