House GOP Pressures SEC to Democratize 401(k) Crypto Access for 90M

A coalition of U.S. House Republicans has intensified pressure on the Securities and Exchange Commission (SEC) to expedite implementation of President Donald Trump’s August 2025 executive order, which aims to allow 401(k) plan participants to allocate retirement savings to cryptocurrencies like Bitcoin. The lawmakers, including House Financial Services Committee Chairman French Hill and Rep. Ann Wagner, argue that the move would democratize access to alternative assets, currently restricted to high-net-worth individuals and institutional investors. In a letter to SEC Chair Paul Atkins, the group emphasized the need for regulatory clarity to enable 90 million Americans to diversify their retirement portfolios beyond traditional stocks and bonds Lawmakers Push SEC to Adopt Trump’s 401(k) Crypto Plan — Is …^[2].

The executive order, titled “Promoting Innovation and Growth in Retirement Savings,” mandates the SEC and Department of Labor (DOL) to revise fiduciary guidelines to accommodate alternative investments in 401(k) plans. This aligns with Trump’s broader agenda to position the U.S. as the “crypto capital of the world,” a shift underscored by the recent public listing of American Bitcoin, a crypto-mining firm co-founded by Eric Trump 401 (k) savers could see new options, including bitcoin - USA TODAY^[1]. The DOL has already rescinded its 2022 guidance, which had discouraged fiduciaries from including cryptocurrencies in retirement accounts, restoring a neutral stance that allows plan administrators to evaluate crypto investments on a case-by-case basis .

Proponents highlight the growing acceptance of cryptocurrencies among institutional investors. For instance, Michigan’s largest public pension plan holds $44 million in Bitcoin and $30 million in Ethereum exchange-traded funds, despite these assets comprising less than 1% of its $115 billion portfolio. Advocates like “Bitcoin Butcher” Ronnie Bedway argue that integrating crypto into retirement plans could attract younger investors and provide a hedge against inflation, particularly as blockchain technology evolves 401 (k) savers could see new options, including bitcoin - USA TODAY^[1]. Meanwhile, Stand with Crypto Michigan estimates that over 1 million residents in the state already own cryptocurrency, reflecting broader societal adoption 401 (k) savers could see new options, including bitcoin - USA TODAY^[1].

Regulatory hurdles remain, however. The SEC and DOL are tasked with finalizing rules within 180 days of the executive order, including potential safe harbors for fiduciaries and updated definitions of “accredited investors.” Critics, including Boston College’s Alicia Munnell, caution that cryptocurrencies’ volatility and complexity make them unsuitable for most 401(k) participants, particularly older investors or those with limited risk tolerance. “Participants don’t understand the product,” she wrote, warning that such investments could introduce “unnecessary risk without improved returns” 401 (k) savers could see new options, including bitcoin - USA TODAY^[1].

The potential market impact is significant. A 1% allocation of the $9.3 trillion in U.S. 401(k) assets to crypto could inject $93 billion into the market, surpassing the $60.6 billion inflow into Bitcoin ETFs since their 2024 launch Nine US Lawmakers Push for SEC Action on Crypto in 401(k) …^[3]. However, risks persist, including high fees, regulatory uncertainty, and the technical challenges of securing digital assets. Coinbase notes that losing private keys can result in permanent loss of crypto holdings, a barrier for average investors 401 (k) savers could see new options, including bitcoin - USA TODAY^[1].

As the SEC prepares to address the issue, Chair Paul Atkins is expected to balance innovation with investor protection. The agency’s Spring 2025 regulatory agenda emphasizes creating a “clear and comprehensive framework” for cryptoassets while reducing compliance burdens. With bipartisan legislation in Congress aiming to modernize accredited investor definitions, the path to mainstream crypto adoption in retirement accounts appears increasingly viable—though the final implementation will depend on the pace of regulatory action and employer adoption .