Crypto in Your 401(k)? Congress Pushes SEC for Change

U.S. lawmakers are intensifying efforts to revise retirement-plan rules so everyday savers could invest in Bitcoin and other cryptocurrencies through their 401(k) accounts, a move that could reshape how Americans save for retirement.

Lawmakers Press for Rule Changes

On Dec. 12, 2025, members of the House Financial Services Committee sent a letter to Securities and Exchange Commission (SEC) Chair Paul Atkins, urging the agency to update its regulatory framework. The goal is to allow digital assets, like Bitcoin, to become eligible investment options in 401(k) retirement plans once regulatory barriers are removed.

Supporters say the move aligns with broader policy signals from the federal government to expand investment choices beyond traditional stocks and bonds. The lawmakers noted that current rules are outdated and prevent millions of retirement savers from diversifying into newer asset classes.

Executive Order Drives Momentum

This congressional push follows President Donald Trump’s Aug. 7, 2025 executive order, titled “Democratizing Access to Alternative Assets for 401(k) Investors.” The order directs federal agencies — including the SEC and Department of Labor (DOL) — to consider revisions that could make alternative investments more accessible in defined contribution plans. Digital assets are explicitly listed among these alternatives.

Under the order, regulators are encouraged to rethink long-standing barriers, including how accredited investor and qualified purchaser standards apply to retirement savers. If implemented, this could broaden eligibility and reduce restrictions that now limit participation in certain markets.

What This Means for Savers

Despite the heightened attention, this effort does not immediately change 401(k) offerings. Even if regulators revise the rules, employers and plan providers would still decide whether to include crypto options, and individuals would have to actively select them for their portfolios.

Supporters argue that adding digital assets — if done with proper safeguards — could offer greater diversification and potential long-term growth beyond traditional investments. Critics and some financial professionals warn about volatility, transparency concerns, and fiduciary risks, underscoring the need for clear “guardrails” before widespread adoption.

In addition to the SEC letter, lawmakers are advancing legislation, such as the Retirement Investment Choice Act, aimed at codifying the executive order and making these changes permanent. That bill would enshrine into law the broader access to alternative investments, including digital assets, within 401(k) plans.

As of today, regulators have not finalized new rules permitting crypto in retirement plans. The SEC and DOL are expected to continue consultations and potentially propose guidance or rule changes in the coming months.