Lawmakers Push SEC to Speed Up Crypto Access for 401(k) Plans

U.S. lawmakers are urging regulators to fast-track new rules that would allow millions of Americans to include crypto in their retirement savings. In a letter sent Monday, nine members of Congress pressed Securities and Exchange Commission (SEC) Chair Paul Atkins to move quickly on President Donald Trump’s executive order aimed at expanding alternative asset investments in 401(k) plans.

The group, led by House Financial Services Committee Chairman French Hill and Capital Markets Subcommittee Chair Ann Wagner, asked Atkins to “provide swift assistance” to the Secretary of Labor and update any regulations needed to carry out the directive. 

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Billions Could Flow Into Crypto

Supporters say the impact on digital assets could be massive. Implementing Trump’s order would open the door to the $9.3 trillion held in U.S. 401(k) plans, a market far larger than current crypto investment vehicles. 

Analysts estimate that even a 1% allocation to digital assets from those retirement accounts could generate about $93 billion in inflows, surpassing the roughly $60.6 billion that has moved into spot Bitcoin exchange-traded funds since their launch in January 2024.

The appeal to Atkins follows the Labor Department’s decision in May to reverse earlier anti-crypto guidance, which had warned fiduciaries to be “extremely cautious” when adding digital assets to retirement funds. Lawmakers now see a clear path for crypto to become part of mainstream long-term investment strategies.

Public Pensions Already Testing the Waters

Trump’s August executive order on “Democratizing Access to Alternative Assets for 401(k) Investors” instructs the SEC to make digital assets more accessible while considering accredited investor and qualified purchaser rules.

The lawmakers argued that easier access to crypto could help the nation’s workforce prepare for retirement. 

Some government retirement funds have already ventured into digital asset exposure. The State of Michigan Retirement System increased its stake in digital assets during the second quarter, purchasing $10.7 million of the ARK 21Shares Bitcoin ETF and maintaining 460,000 shares of the Grayscale Ethereum Trust (ETHE) valued at about $15.6 million.

As Congress presses for regulatory clarity, the push to integrate crypto into retirement portfolios could transform how Americans save—and how digital assets are viewed as long-term investments.

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