Key Takeaways
- A bipartisan group of nine lawmakers wrote a letter urging the SEC to update retirement plan guidance.
- Trump signed an executive order last month opening the $12 trillion 401(k) market to crypto investment.
- Roughly 90 million Americans are invested in 401(k) retirement plans.
A bipartisan coalition of nine House lawmakers is pressing the Securities and Exchange Commission (SEC) to move quickly on President Donald Trump’s directive to bring crypto into the U.S. retirement system.
In a letter addressed to SEC Chair Paul Atkins, the lawmakers urged regulators to amend existing rules and implement Executive Order (EO) 14330, which Trump signed last month to expand investment options in 401(k) plans.
Opening the $12 Trillion 401(k) Retirement Market to Crypto
The U.S. retirement system currently holds about $12.1 trillion across 401(k) accounts, covering more than 90 million Americans.
Under the Employee Retirement Income Security Act (ERISA), these plans have historically been limited to traditional asset classes like stocks, bonds, and mutual funds.
Trump’s executive order does not rewrite ERISA but directs federal agencies to revisit guidance and remove barriers that have long excluded alternative assets such as Bitcoin (BTC).
The SEC, in coordination with the Treasury Department and Department of Labor, has been tasked with exploring adjustments to accredited investor thresholds and qualified purchaser rules.
The letter from lawmakers emphasized that broader diversification could improve retirement outcomes.
“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 net risk-adjusted returns,” it stated.
Crypto’s Appeal for Retirement Portfolios
Lawmakers pointed to crypto’s performance over the past decade, which has outpaced traditional assets like equities, bonds, and gold.
A 2025 U.S. Retirement Survey from Schroders cited in the letter found rising appetite for alternatives since Trump’s order, with a notable increase in demand for digital assets as retirement plan options.
If implemented, the SEC’s forthcoming guidance could represent the most significant step yet toward mainstream adoption of crypto in the United States.
Analysts expect the rules to arrive by early 2026, potentially opening the door for Bitcoin ETFs and other regulated digital asset products to flow directly into retirement portfolios.
Risks and Criticism
Still, the push has not been without critics. Opponents warn that crypto’s notorious volatility could put retirement savers at risk.
Historically, Bitcoin and other major tokens have lost more than half their market value in bear cycles, with many smaller altcoins falling more than 70%.
Supporters counter that mainstream adoption itself could temper volatility over time, narrowing the gap between traditional finance and crypto.
By giving investors exposure through regulated retirement plans, they argue, crypto could evolve from a speculative asset to a stabilizing force in diversified portfolios.
