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- Lawmakers push SEC to allow Bitcoin and crypto in 401(k)s.
- Executive Order 14330 aims to expand alternative investments in retirement plans.
- SEC guidance expected by early 2026 could reshape retirement investing.
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A bipartisan group of nine House lawmakers is pressing the Securities and Exchange Commission (SEC) to act swiftly on President Donald Trump’s recent executive order aimed at expanding investment options in U.S. 401(k) retirement plans.
In a letter to SEC Chair Paul Atkins, the lawmakers called for updated guidance that would allow retirement accounts to include alternative assets such as Bitcoin (BTC) and other cryptocurrencies. The move could unlock broader diversification for over 90 million Americans holding 401(k) accounts, collectively valued at $12.1 trillion.
Executive Order 14330: A New Path for Retirement Investing
Trump’s Executive Order 14330, signed last month, directs federal agencies to revisit restrictions that have historically limited retirement plans to traditional assets like stocks, bonds, and mutual funds under the Employee Retirement Income Security Act (ERISA).
While the order does not rewrite ERISA, it encourages the SEC, Treasury Department, and Department of Labor to explore adjustments to accredited investor thresholds and qualified purchaser rules. Lawmakers argued that broader access to alternative assets 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,” the letter stated.
Crypto’s Growing Appeal in Retirement Portfolios
The lawmakers highlighted crypto’s strong historical performance compared with traditional assets. According to a 2025 U.S. Retirement Survey from Schroders, interest in alternative investments—including digital assets—has surged since the executive order, signaling increasing demand for crypto in retirement accounts.
Analysts expect SEC guidance on these changes by early 2026, potentially paving the way for regulated Bitcoin ETFs and other crypto products to flow directly into 401(k)s and IRAs.
Risks and Cautions
Despite optimism, critics warn that crypto’s volatility poses significant risks for long-term retirement savings. Bitcoin and major altcoins have historically experienced dramatic drawdowns, sometimes losing more than half their value in downturns.
Also Read: Fidelity’s FBTC Leads $363M Bitcoin ETF Selloff—Crypto Braces for Fed Decision
Supporters argue that integrating crypto into regulated retirement accounts could gradually reduce volatility, providing investors with exposure to growth opportunities while maintaining portfolio diversification.
As Congress urges the SEC to act, the future of crypto in U.S. retirement portfolios hangs in the balance. If approved, this could mark a historic step toward mainstream adoption, potentially reshaping how Americans invest for their retirement.
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Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
