Congress is pressuring the SEC to update rules so crypto can be included in 401(k) plans

Congress is pushing the Securities and Exchange Commission (SEC) to open the door for Bitcoin and other cryptocurrencies in 401(k) retirement plans. This comes after a major policy shift from the White House earlier this year.

On December 11, members of the House Financial Services Committee sent a formal letter to SEC Chair Paul Atkins. They urged him to update securities rules so that digital assets can be treated like other alternative investments in retirement accounts.

Lawmakers say Americans saving for retirement deserve more investment choices. They argue that current rules are outdated and too restrictive, blocking millions from accessing new asset classes.

Lawmakers push SEC to act on Trump’s retirement order

The House Financial Committee’s push follows directly on the heels of an executive order signed by U.S. President Donald Trump in August 2025. The order, titled “Democratizing Access to Alternative Assets for 401(k) Investors,” requires federal agencies to expand the investable choices available to retirement planners. 

It emphasizes that every American should be able to invest in alternative assets when it makes financial sense. It also notes that fiduciaries must assess risks, managers’ experience, and suitability before such choices are included in retirement plans.

Notably, cryptocurrencies were specifically listed alongside real estate and private equity. This marked one of the most significant federal acknowledgments of digital assets as legitimate investment choices.

In their letter, lawmakers praised the White House directive. They said the SEC must now take parallel action to ensure the policy becomes reality. They also highlighted the need to redefine who qualifies as an “accredited investor.”

Strict rules about investor qualification currently restrict involvement in certain private and alternative investment markets. This program is often only available to wealthy or high-net-worth individuals. And Congress now wants to expand those rules to people with professional licenses, related job experience, or those who can pass a competency exam. 

These changes would ensure that a wider spectrum of workers, including teachers, nurses, engineers, and skilled laborers, would have access to investments that were once only available to wealthy Americans. 

The lawmakers also said the SEC should coordinate with the Department of Labor, which oversees retirement plan fiduciaries, to agree on the rules. Both agencies, they said, needed to figure out a way to safely and responsibly add alternative assets into 401(k) menus.

SEC signals a shift in how crypto will be regulated

The SEC has been more open on digital assets already under Chair Paul Atkins. He has abandoned the previous aggressive enforcement approach and initiated additional initiatives to clarify regulations. One of his significant projects is “Project Crypto,” a program he has developed to establish the classification, trading, and storage of digital assets. 

Atkins has stated in recent public remarks that a significant percentage of the cryptocurrencies traded on the market today are not securities. This distinction matters especially because, not being classified as securities, assets are subject to fewer restrictions and can be more readily included in retirement plans. 

The SEC is also considering sweeping reforms that might update the review, approval, and oversight of investment products. 

The official guidance includes investor protections, as well as clear disclosures for investors who may buy cryptocurrencies, and safeguards for retirement savers, officials say. Supporters say that if the changes become official, crypto-investing retirement options could gain traction.

Digital assets will be included in standard 401(k) lineups alongside mutual funds and ETFs, at least until they are fully integrated into the market. However, critics argue that this move is risky. They say cryptocurrencies are prone to extreme price fluctuations and could expose retirees to unpredictable losses. Skeptics have warned that many workers do not fully understand the fluctuation seen in crypto markets. 

Even so, momentum is emerging. Companies that provide retirement solutions have seen an uptick in interest among younger workers who want digital assets integrated into their long-term savings plans. The move to include Bitcoin in 401(k) plans may push the asset to new highs.

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