The White House Opened the Door—Now Lawmakers Want Action
On December 12, 2025, members of the House Financial Services Committee sent a letter to the Securities and Exchange Commission with a straightforward ask: rewrite the rules that currently keep Bitcoin and other digital assets out of 401(k) retirement plans. The move builds directly on President Trump’s August 7 executive order—titled “Democratizing Access to Alternative Assets for 401(k) Investors”—which told both the SEC and the Department of Labor to tear down the regulatory barriers blocking everyday savers from newer asset classes.
The committee’s argument is simple. The rules governing 401(k) investment menus were written in the 1980s for a world of stable stocks and bonds. Markets have changed dramatically since then, and lawmakers believe retirement options should evolve too. Bitcoin ticked up modestly to around $90,300 after news of the letter broke—a small 0.08 percent gain, but enough to show that policy news still moves the needle.
The Case Against Crypto in Retirement Accounts
Not everyone thinks mixing Bitcoin with retirement savings is a good idea. Labor unions like the American Federation of Teachers have raised alarms, warning that exposing millions of workers to Bitcoin’s notorious price swings could put decades of savings at risk. Even legendary investor Warren Buffett has repeatedly pointed out that Bitcoin “produces no cash flow,” meaning its value relies almost entirely on what the next buyer is willing to pay.
Then there’s the legal side. Anyone managing a 401(k) plan is bound by the Employee Retirement Income Security Act, which requires every investment option to meet strict standards of safety and prudence. Critics argue that Bitcoin’s short history, sudden liquidity crunches, and ongoing security vulnerabilities make it nearly impossible to justify under those standards—at least for now. Supporters fire back that excluding an asset with a trillion-dollar market cap is starting to look reckless, especially as pension funds in other countries begin dipping their toes in.
What Happens Next Could Reshape Retirement Investing
The political winds are clearly shifting. If the SEC changes its rules—whether through fresh guidance or tweaks to existing investment exemptions—plan administrators would finally have the legal green light they’ve been waiting for. Behind the scenes, major firms that manage 401(k) accounts are already building crypto investment options designed to fit right alongside your standard target-date fund. The conversation would shift from “Can we do this?” to “How much should a 35-year-old own versus someone who’s 60?”
The Money at Stake
Industry analysts estimate that if just 1 percent of the $9 trillion sitting in 401(k) accounts flowed into digital assets, that would mean roughly $90 billion moving into crypto over the first three years. That’s comparable to all the money that’s poured into spot Bitcoin ETFs worldwide—and it would create a steady new source of demand that could actually smooth out some of Bitcoin’s famous volatility over time.
The Political Timeline
The SEC hasn’t announced a deadline, but committee members have made it clear they’re willing to force the issue through legislation if the agency drags its feet. With an election year heating up and retirement security consistently ranking as a top voter concern, crypto’s push to get into 401(k) plans carries more political momentum—and more market weight—than ever before. Whether regulators move fast or slow, the fact that retirement-account access is even on the table is already changing how Wall Street thinks about crypto.
