Three Democratic senators have requested Constancy Investments, one of many world’s largest 401(ok) suppliers, to cease permitting retirement plan sponsors to expose their members and workers to bitcoin and different cryptocurrency investments.

In a letter Monday, Illinois Sen. Dick Durbin, Massachusetts Sen. Elizabeth Warren and Minnesota Sen. Tina Smith expressed concern concerning the crypto market’s volatility, highlighted by the collapse and chapter of FTX, the trade’s second-largest trade. The worth of bitcoin, in the meantime, has fallen to a two-year low of $16,209.

“FTX’s collapse, which has wreaked havoc throughout the digital asset market, can’t be ignored,” the senators wrote. “By many measures, we’re already in a retirement safety disaster, and it shouldn’t be made worse by exposing retirement financial savings to pointless threat.”

Learn extra: The Fall of FTX and Sam Bankman-Fried: A Timeline

A Constancy spokeswoman declined to reply the senators’ particular issues, however stated that “current occasions within the digital property trade have additional underscored the significance of requirements and safeguards.” It initially introduced crypto investments in its 401(ok) accounts earlier this 12 months, citing “rising curiosity” from employers and their workers.

The letter marks one other cloud over the crypto world, which was already struggling amid quickly deflating market values over the previous 12 months.

Whereas the letter from the three senators is notable, it is simply the most recent in a sequence of strikes from Capitol Hill. The US Home of Representatives Monetary Companies Committee is planning to carry a listening to about FTX in December.

“Sadly, this occasion is only one out of many examples of cryptocurrency platforms which have collapsed simply this previous 12 months,” Rep. Maxine Waters, a Democrat from California and chairwoman of the committee, stated in a press release final week. She added that legislative motion is required to determine federal oversight of firms dealing with digital property like bitcoin in order that they “can not function within the shadows.”

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