A group of U.S. lawmakers is urging the SEC to speed up work on rules that would enable American workers to invest in crypto through their 401(k) retirement accounts.
The push reflects growing political momentum to treat digital assets as part of mainstream retirement planning.
Lawmakers Urge Swift Action
On Monday, nine lawmakers, led by House Financial Services Committee Chairman French Hill and Subcommittee on Capital Markets Chair Ann Wagner, wrote to SEC Chair Paul Atkins.
They urged him to coordinate with the Labor Department and make “necessary adjustments” to regulations. Doing so would enable cryptocurrencies and other alternative assets to be included in retirement plans.
According to the letter, the lawmakers believe the SEC must play a central role in updating guidance to reflect the changing investment landscape. They argue that retirement savers should have the freedom to access digital assets if fiduciaries find them appropriate.
Trump’s Executive Order as the Foundation
The request is anchored in President Donald Trump’s executive order from August, which set new guidelines for retirement investing. Notably, it focused on “democratizing access to alternative assets for 401(k) investors.”
The order instructed regulators, including the SEC, to remove barriers that limit the inclusion of crypto in participant-directed plans. Especially, the executive order mentions easing restrictions tied to accredited investor and qualified purchaser rules.
Potential Impact on Retirement Savings
Lawmakers backing the effort argue that crypto exposure could help 90 million Americans diversify their retirement portfolios. They stress that fiduciaries, not federal agencies, should decide on whether including digital assets is a sound strategy.
For context, the 401(k) system currently holds about $9.3 trillion in assets. Analysts say that if just 1% of these funds were directed toward cryptocurrencies, nearly $93 billion could flow into the digital asset market.
This amount would dwarf the $60.6 billion that has entered spot Bitcoin exchange-traded funds (ETFs) since their launch in January 2024.
Changing Stance from the Labor Department
The push comes after the Department of Labor walked back its earlier opposition to crypto in May. Its earlier guidance had urged fiduciaries to exercise “extreme care” when considering crypto in retirement plans, effectively discouraging adoption.
Meanwhile, even before clear regulations were in place, some public pension funds began experimenting with crypto-linked investments.
The Michigan Retirement System expanded its holdings during the second quarter by purchasing $10.7 million in the ARK 21Shares Bitcoin ETF while continuing to hold $15.6 million worth of shares in the Grayscale Ethereum Trust.
On the other hand, the Wisconsin Investment Board took the opposite approach. After being one of the first state pension funds to buy into BlackRock’s Bitcoin Trust ETF, it sold off its stake in the first quarter.
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