Fidelity is rolling out Bitcoin investing for 401(k) plans

Illustration by Alex Castro / The Verge

Fidelity will soon allow eligible individuals to save a portion of their 401(k) in digital currency. Employees will only be able to access the option if their employer signs off on it.

According to the Wall Street Journal, employees can save up to 20 percent of their retirement fund in the virtual currency. Dave Gray, Fidelity's head of workplace retirement offerings and platforms, told the WSJ that Fidelity will add support for other cryptocurrencies in the future.

As a leader in digital assets, we are thrilled to be the first to offer employers exposure to bitcoin for the core lineup of 401(k)s that reflects our commitment to meeting their evolving needs and our belief in the promise of the technology for the financial industry.

MicroStrategy is the first company to announce that it has adopted the Bitcoin retirement fund option. The company, led by Michael Saylor, bought $250 million in Bitcoins in 2020 as part of its financial strategy. The SEC objected to the way MicroStrategy accounted for its assets in its SEC filing. MicroStrategy used non- GAAP measures to account for its digital assets.

In 2000, the SEC settled with Saylor and other executives for $11 million over charges of civil accounting fraud. The executives paid the disgorgement of $10 million and a $350,000 civil penalty without denying the Commission's allegations.

Fidelity's new offering may face some resistance. In an effort to protect the retirement savings of U.S. workers, the US Department of Labor warned against offering an option to save for retirement in cryptocurrencies.