After U.S. lawmakers reintroduced the Financial Freedom Act in mid-February, there is fresh debate about the role crypto should play in retirement plans. The goal of the Financial Freedom Act is simple: Let Americans invest their retirement savings how they want, even if it means investing in crypto. 

There's just one problem with that. Right now, the official guidance from the U.S. Department of Labor is that employers should not offer any crypto options in their 401(k) plans. Moreover, at the beginning of February, a trio of regulators -- the SEC, the North American Securities Administrators Association, and the Financial Industry Regulatory Authority -- warned against crypto exposure in self-directed individual retirement accounts (IRAs). With that in mind, here's a closer look at the pros and cons of adding cryptocurrencies such as Bitcoin (CRYPTO: BTC) to your retirement portfolio.

The overwhelming advantage to adding crypto to a retirement portfolio is the opportunity for truly life-changing gains. For example, over the period from 2011 to 2021, Bitcoin was the top-performing asset class in the world, and it wasn't even close. Over that time period, Bitcoin delivered annualized returns of 230% to investors. In comparison, the next-best asset class (big tech stocks) returned only 20% on an annualized basis. 

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Source Fool.com