Crypto Investing in 401(k)s Draws Political Lines in Congress

U.S. lawmakers are drawing battle lines in the fight over cryptocurrency assets in 401(k) retirement plans.

Sen. Tommy Tuberville (R-Ala.) has introduced a measure that would prohibit the U.S. Labor Department from limiting the kinds of products workplace retirement savers can invest in through self-directed brokerage accounts. Sen. Elizabeth Warren (D-Mass.), meanwhile, is admonishing Fidelity Investments Inc. for its decision last week to launch a new 401(k) cryptocurrency product.

The Labor Department lit a fuse under the crypto investing world in March when it issued guidance all but banning 401(k) plans from offering digital currency assets. The guidance implicated so-called ...