Lawmakers Urge SEC to Allow Crypto in $12.5T 401k Market

US Lawmakers Urge SEC to Implement Trump’s Order Allowing Crypto Investments in 401(k) Retirement Plans

  • US lawmakers are requesting that the SEC implement a recent executive order to allow crypto investments in 401(k) retirement plans.
  • The executive order, signed by President Donald Trump in August, opens access to the $12.5 trillion 401(k) market for digital assets.
  • Members of the Financial Services Committee believe this could help Americans increase their retirement savings.
  • The order also covers other alternative assets like private equity and real estate within 401(k) accounts.
  • The Department of Labor will review and clarify rules to allow private crypto allocations in retirement plans under federal law.

Lawmakers in the United States are urging the Securities and Exchange Commission (SEC) to put into effect President Donald Trump’s executive order granting Americans the option to include cryptocurrencies in their 401(k) retirement plans. The executive order, issued in August, seeks to widen investment choices for retirement accounts, which currently represent a $12.5 trillion market.

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In a letter to the SEC, members from the Financial Services Committee praised the executive order’s aim to help Americans build stronger retirement savings. They encouraged the SEC to coordinate with the Department of Labor to update existing regulations and guidance. According to the lawmakers, these updates are needed to ensure millions of Americans can access alternative investments in their retirement portfolios.

The letter from the committee stated: “We encourage the SEC to provide swift assistance to the Secretary of Labor and to make any necessary revisions to its current regulations and guidance.” Lawmakers also asked the SEC to review pending congressional legislation regarding accredited investors. They expressed hope that opening up these assets will benefit 90 million Americans who cannot currently invest in alternatives for retirement. The committee’s statement noted that these changes are anticipated to help Americans secure a more comfortable retirement.

The executive order directs the Department of Labor to re-examine existing rules around alternative investments, including digital assets like crypto, as part of 401(k) plans. These updates must comply with the Employee Retirement Income Security Act of 1974, which sets standards for private retirement plans. The Labor Department is also responsible for clarifying how private funds—including crypto, private equity, and real estate—can be allocated within these plans.

Officials believe adding crypto to retirement accounts may increase activity in the digital asset market. President Trump has indicated he wants the United States to become the global center for cryptocurrencies. For further details on policy cooperation, refer to the report on the US, UK task force to cooperate on crypto regulation.

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The executive order includes not just crypto but other alternative assets—such as private equity and real estate—which may now be available for US 401(k) account holders pending revised federal guidance.

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