U.S. Representative Maxine Waters has called on the Department of Labor to withdraw a proposal allowing 401(k) retirement plans to invest in alternative assets, including digital assets. In an 11-page letter, Waters criticized the proposal, highlighting a contradiction between the Department's recognition of digital assets for retirement savings and the SEC's ongoing efforts to establish investor protection mechanisms. She pointed out the risks associated with the volatility of digital assets and the broader decline in the digital asset ecosystem, including reduced trading activity and user engagement. Waters, who previously chaired the House Financial Services Committee, may reclaim the position if Democrats secure a majority in the upcoming midterm elections.