Congress Urges SEC to Approve Bitcoin and Crypto in 401(k) Plans

Highlights:

• Congress pushes SEC to expand retirement options, including cryptocurrencies for wider investor access.
• Proposed changes could give teachers, nurses, and skilled workers access to alternative investments.
• Even small retirement fund allocations could create billions in buying demand for Bitcoin.

Congress is asking the Securities and Exchange Commission (SEC) to allow Bitcoin and other digital assets in 401(k) retirement accounts. This request comes after the White House made a policy change earlier this year. Lawmakers say Americans saving for retirement should have more options besides traditional investments.

Congress Moves to Modernize 401(k) Retirement Accounts with Crypto

On December 11, members of the House Financial Services Committee sent a letter to SEC Chair Paul Atkins. They asked for updates to securities rules so cryptocurrencies can be treated like other alternative investments. This would make them eligible for retirement plans. Congress said that the current rules are old and stop millions of workers from accessing new types of assets.

The push follows U.S. President Donald Trump signing an executive order in August 2025 called “Democratizing Access to Alternative Assets for 401(k) Investors.” The order directs federal agencies to give people more choices in their retirement accounts. It says that alternative assets, including cryptocurrencies, real estate, and private equity, should be available whenever it is financially reasonable, as long as risks are checked and managers’ experience is considered first.

In their letter, House members praised the White House initiative and asked the SEC to update its policies. They also suggested a broader definition of “accredited investor.” Right now, alternative investments are mostly limited to wealthy people. The proposed changes would allow workers with professional licenses, relevant job experience, or the ability to pass competency exams to invest.

This would give retirement investment options to teachers, nurses, engineers, and skilled workers who were excluded before. Lawmakers said the SEC should work with the Department of Labor to safely include alternative assets in 401(k) plans. This way, regulations would still protect retirement savers while giving more people access to new investments.

Supporters say this plan could change retirement planning by including assets that used to be only for wealthy investors. Critics warn that cryptocurrencies are volatile and could cause sudden losses for retirees. Despite these concerns, companies offering retirement plans report growing interest from younger employees who want to invest in digital assets.

Growing Demand for Crypto in Retirement Plans Could Boost Bitcoin

Market demand seems to be growing. Companies that provide retirement plans report a stronger interest from younger workers who want crypto options. Adding digital assets like Bitcoin to 401(k) plans could increase their value and give Americans new ways to diversify their savings.

If Congress’s proposals and the SEC’s possible changes succeed, retirement investors could access assets beyond regular stocks and bonds. These changes could transform investing for millions, offering alternatives that were previously available only to wealthy individuals.

According to White House figures, total U.S. retirement assets reached $43.4 trillion as of March 31. Yet most savers still cannot invest in alternative assets. Legislators believe that opening small and controlled allocations might raise risk-adjusted returns and optimize and modernize retirement planning. Crypto experts believe that this is a major move toward incorporating BTC into mainstream finance.