Crypto News: U.S. Lawmakers Push Major Bill to Allow Crypto in 401(k) Retirement Plans

US lawmakers move to codify access to crypto in 401(k) retirement plans now, targeting expanded investment choice.

U.S. Representative Troy Downing is introducing a crucial bill. This legislation seeks to allow crypto in 401(k) retirement plans. The Retirement Investment Choice Act is anticipated this Tuesday. This order follows an earlier executive order by the Trump administration. The bill would massively increase investment choices for Americans saving for retirement.

New Legislation Codifies Access to Digital Assets for Retirement Savings

First of all, the proposed bill was co-sponsored by four Republican legislators. In addition, it seeks to codify the former President’s executive order. That order was released on August 7, 2025. This action, therefore, makes the policy permanent for future generations.

In particular, the executive order expressed a clear belief. Every American making plans to retire ought to have wider funds. These funds will include the term “alternative assets” as applicable. First, a plan fiduciary must consider this investment reasonable. This first step paved the way for digital currency investment.

Related Reading: Trump Signs Executive Order to Add Crypto and Private Equity to 401(k) Plans | Live Bitcoin News

In addition, the order broadened the definition of “alternative assets.” This definition includes private investments in the market and real estate. Further, it encompasses commodities and infrastructure projects. Importantly, it also applies to digital assets. These digital assets will have to be held through actively managed investment vehicles.

As a result, this proposal has taken a lot of political traction. Thus, the Department of Labor altered its previous position. It also retracted its earlier advice warning against cryptocurrency in 401(k)s. This significant policy change opens the way for acceptance. It embraces digital currencies into long-term retirement planning on a broad scale.

Congress Advances Effort to Legalize Crypto in 401(k) Plans

Last year, nine members of Congress called for the SEC to expedite implementation. The petitioners urged the executive order on 401(k) crypto access. They contended that millions of Americans are unable to invest. This makes it very difficult to access alternative assets. Hence, lawmakers are looking for improved retirement options for the citizens of today.

Therefore, these officials would like to offer a wider range of investment opportunities. They believe that this diversity is essential for long-term security. Following that, Representative Downing commended President Trump for his leadership. He applauded the “democratization” of finance for common Americans.

Downing said this bill is a Congressional leader. Importantly, he said that alternative investments have great potential. They can put money into the pockets of millions of Americans really efficiently. He is proud to be the leader of this legislative effort.

Besides, the passage of the executive order could bring significant changes. Moving towards retirement accounts would irrevocably change the entire retirement system in the United States. In fact, there is more than $9 trillion in 401(k) accounts around the country. This policy change will affect millions of Americans directly.

Ultimately, this legislative effort is a sign of a desire for increased choice. It offers a formal digital asset framework for retirement plans. This approach helps to manage volatility risk through professional management. The Retirement Investment Choice Act is a significant step in the right direction.

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