Lawmakers Urge SEC to Open 401(k)s to Bitcoin and Crypto

The lawmakers back Trump’s order, and urge the SEC to let 401(k) savers invest in more than just stocks and bonds.

Written By:
Iyiola Adrian

Reviewed By:
Jahnu Jagtap

Lawmakers Urge Sec To Open 401(K)S To Bitcoin And Crypto

A group of Republican lawmakers is pressing the U.S. Securities and Exchange Commission (SEC) to move quickly on President Donald Trump’s executive order that would allow millions of Americans to add alternative assets, including Bitcoin (BTC), Ethereum (ETH), 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 urged 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 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


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Iyiola is an experienced crypto writer specializing in simplifying complex blockchain and cryptocurrency topics for a broad audience. With expertise in ICOs, DeFi, NFTs, and regulatory updates, he offers valuable insights to help readers make informed decisions. He is proficient in SEO optimization.
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Jahnu Jagtap is a Research Analyst with over 5 years of experience in crypto, finance, fintech, blockchain, Web3, and AI. He holds a BSc in Mathematics and is certified in Blockchain and Its Applications (SWAYAM MHRD), Cryptocurrency (Upskillist), and NISM Certifications. Jahnu specializes in technical, on-chain, and fundamental analysis, while also closely tracking global macro trends, regulations, lawsuits, and U.S. equities. With a strong analytical background and editorial insight, he drives content that delivers clarity and depth in the fast-evolving world of digital finance.