A group of Republican lawmakers is pressing the Securities and Exchange Commission (SEC) to move quickly on President Trump’s executive order that would allow millions of Americans to add alternative assets, including Bitcoin, Ethereum and other cryptocurrencies, to their 401(k) retirement accounts.
In a joint letter signed by the House Financial Services Committee Chairman French Hill (AR-02), together with Subcommittee on Capital Markets Chair Ann Wagner (MO-02) and several colleagues, they urge SEC Chairman Paul Atkins to act quickly without delay.
The lawmakers said the executive order, which was signed on August 7, sets out a clear policy that every American preparing for retirement should have the chance to invest in funds that include alternative assets when plan managers believe it could boost returns.
This letter was also signed by other lawmakers including Rep. Frank Lucas (OK-03), Rep. Warren Davidson, Rep. Marlin Stutzman, Rep. Andrew Garbarino, Rep. Mike Lawler, Rep. Troy Downing, and Rep. Mike Haridopolos. Together they praised the order as a step that could give workers more freedom and new tools to build wealth for retirement.
They specifically call on the SEC to work closely with the Department of Labor to revise and update its rules. Right now, many rules limit what retirement plans can offer. So they urge the SEC to look at standards for “accredited investors” and “qualified purchasers”, with the aim of opening up access to more people.
“We applaud the EO’s policy that every American preparing for retirement should have access to funds that include investments in alternative assets when the relevant plan fiduciary determines that such access provides an appropriate opportunity to enhance the net risk-adjusted returns.” the lawmakers wrote in the letter.
They also asked the SEC to consider bipartisan legislation being discussed in the 119th Congress that touches on accredited investor rules. According to the group, nearly 90 million Americans are currently locked out of these investment options, which leaves them with fewer choices than institutional investors.
The lawmakers said the changes could give ordinary Americans a better chance at a comfortable and secure retirement. They closed their letter with a call for swift action so the benefits of the order can reach workers as soon as possible.
Also Read: SEC Approves New Standards to Fast-Track Spot Crypto ETFs Listings
