A United States Senator, Cynthia Lummis, recently declared her opinion ad stands for crypto assets. According to her, digital assets should be a part of the government’s assets allocates to the retirement plans.
Lummis is a strong proponent of Bitcoin. So, it’s not surprising that she would wish for the citizens to add Bitcoin to their retirement plans as part of the diversified portfolio. The Senator made this pronouncement during the “CNBC Financial Advisor Summit,” which occurred yesterday, June 20, 2021.
Lummis stated her wish that crypto-assets such as Bitcoin become a part of retirement funds allocations during her speech. According to her, crypto assets could serve as a hedge against inflation for retirement.
She also said that her wish is to see individuals use cryptocurrencies operating under the tenets of the law. In Lummis’s opinion, any cryptocurrency that complies with the “Anti-money laundering & Bank Secrecy Act” is worth considering.
Further in the speech, the Senator made emphasis on the importance of diversifying asset allocation. According to Lummis, this move will protect citizens from inflation that stems from money printing and government spending.
To support this, the Senator pointed out that the US Congress spends trillions of dollars, thereby flooding the economy and the global economy.
Cryptocurrency Sector Expected To Thrives After Senator’s Appreciation
Before now, United States citizens can add crypto assets as part of their retirement portfolios. The practice became possible in 2014 following the notice of the Internal Revenue Service. But anything around digital asset holding hasn’t been a widely supported practice.
Many retirement plans that support cryptocurrencies emerged in 2020. But even with that, many analysts seem unconvinced about the sustainability of the practice.
For example, Fast-forward to June 22, 2021, an Alliant retirement Consulting vice president, Aaron Pottichen, stated that sponsors of retirement plans might not be convinced or prepared to adopt crypto in their assets line-up.
While speaking to our source at the summit, Cynthia Lummis disclosed that she has 5BTC in her investment portfolio. According to her, she bought the coin in 2012 when it was barely $330.
But even though she remains bullish where Bitcoin is concerned, it’s still safer to diversify in crypto. Lummis believes that no one should put all eggs into one Bitcoin basket. But to spread it towards other investments as well.
Crypto investors look forward to the time when more individuals and Government establishments adopt digital assets. Gradually, the events unfolding might bring the vision closer to reality.