Illinois Attorney General Kwame Raoul is leading a coalition of states opposing a proposed federal rule they say could weaken protections for retirement investments.
Raoul and attorneys general from 23 other states submitted comments to the U.S. Department of Labor criticizing a Trump administration proposal that could allow more 401(k) investments in higher-risk assets, including cryptocurrency and private credit.
According to the coalition, the rule could expose millions of workers and retirees to major financial losses by making it easier for retirement fund managers to shift money into more volatile investments.
The Department of Labor estimates the proposal could affect about 4-point-5 million workers and retirees and nearly 178 billion dollars in investments each year.
Raoul says workers should be able to rely on existing protections designed to safeguard retirement savings.
