TLDR
- U.S. lawmakers push SEC to speed up Trump’s EO 14330, expanding crypto in 401(k)s.
- Nine lawmakers urge SEC to fast-track crypto access in retirement plans.
- SEC pressed to align with Trump’s EO: Crypto may soon hit retirement savings.
- Lawmakers want retirement savers to access crypto and alternatives faster.
- Retirement reform could bring crypto to 90M Americans if SEC acts swiftly.
U.S. lawmakers have formally urged the Securities and Exchange Commission to act swiftly on crypto access in retirement plans. The move follows President Trump’s August Executive Order 14330, which seeks broader inclusion of alternative assets in 401(k) portfolios. Lawmakers emphasized that crypto access in retirement plans could improve net risk-adjusted returns for American workers.
The executive order directs the SEC to coordinate with the Department of Labor on updating relevant regulatory frameworks. Lawmakers asked SEC Chair Paul Atkins to remove longstanding obstacles that prevent participants from holding digital assets. They stressed that nearly 90 million Americans currently lack access to these opportunities under existing investment rules.
The bipartisan letter included signatures from House Financial Services and Capital Markets subcommittee leaders. They called on the SEC to adjust guidance concerning the definitions of accredited investors and qualified purchasers. These adjustments would be critical for opening crypto access in retirement plans governed by fiduciary rules.
Bitcoin Gains Ground as Retirement Portfolio Option
Bitcoin is prominently featured in discussions surrounding crypto access in retirement plans as lawmakers push for updated investment frameworks. The executive order mandates the SEC to consider regulatory revisions that would allow Bitcoin allocations in participant-directed plans. If approved, the shift could inject billions into the Bitcoin market through retirement vehicles.
Data shows that some state retirement systems have already adopted Bitcoin-linked ETFs, signaling institutional interest. For example, Michigan’s pension fund added over $10 million to the ARK 21Shares Bitcoin ETF during the second quarter. Despite crypto volatility, supporters believe mainstream access through retirement accounts could stabilize Bitcoin’s market behavior over time.
Analysts estimate that even a modest 1% Bitcoin allocation from the $9.3 trillion 401(k) market could trigger $93 billion in capital inflows. This figure exceeds the $60.6 billion moved into spot Bitcoin ETFs since January 2024. Advocates argue that crypto access in retirement plans would increase diversification and long-term portfolio resilience.
Ethereum Poised for Role in Retirement Strategy
Ethereum also stands to benefit from expanded crypto access in retirement plans as SEC guidance evolves. The Grayscale Ethereum Trust remains a key holding in several public pension systems. In Michigan, the fund retained $15.6 million worth of shares during the second quarter of 2025.
With Ethereum’s smart contract capabilities and broader utility, some lawmakers view it as a complementary asset to Bitcoin. Including Ethereum in 401(k) offerings could enable participants to engage with a broader range of blockchain use cases. The Executive Order’s focus on alternative assets implies multiple crypto products may qualify once regulatory hurdles clear.
If approved, Ethereum-linked retirement products could further legitimize the asset class in traditional finance. Lawmakers suggested reviewing pending legislation on accredited investor standards to facilitate these developments. They remain focused on ensuring crypto access in retirement plans becomes a practical and safe option for U.S. savers.
