Trump’s Crypto 401(k) Plan Sparks Lawmaker Support, SEC In Spotlight

Reports have disclosed that a bipartisan group of lawmakers has asked the Securities and Exchange Commission to act quickly on an executive order from US President Donald Trump that could open 401(k) plans to alternative assets, including cryptocurrencies.

The executive order was signed on August 7, 2025 and directs federal regulators to examine rules that have kept many retirement savers out of private markets.

Lawmakers Press SEC For Swift Action

In a letter sent on September 22, nine House members led by Representative French Hill and Rep. Ann Wagner asked SEC Chair Paul Atkins to provide “swift assistance” in implementing the president’s directive.

The lawmakers asked the SEC to work with the Department of Labor to clarify how participant-directed defined-contribution plans could offer access to private equity, real estate and digital assets while still protecting workers.

Labor Rule Change Removes A Big Roadblock

The backdrop to the push is a change at the Department of Labor. In late May the DOL withdrew a 2022 guidance that had warned plan fiduciaries to use “extreme care” before adding cryptocurrency to 401(k) menus.

That pullback left the department in a neutral stance and increased pressure on the SEC to lay out clearer rules for how such options could be offered.

Potential Market Scale Is Huge

Based on reports, the US defined-contribution market holds roughly $12 trillion and covers more than 90 million Americans. That means even a small allocation to crypto could represent large dollar flows.

Analysts and industry pieces have pointed out that a 1% allocation across a very large pool would translate into billions of dollars moving into crypto-related products. Plan sponsors and fund managers are already watching the math.

Cautions From Lawyers And Some Analysts Remain Other observers stress risk. Critics say cryptocurrencies are volatile and pose record-keeping, valuation and custody challenges that are different from stocks and bonds.

 

Some experts warn that adding these assets to plans without clear guardrails could expose plan sponsors to legal and financial risk. Reports show a mix of optimism and caution across the industry.

Featured image from Nasdaq, chart from TradingView