Lawmakers Push SEC to Enable Crypto 401(k) Plans
Nine bipartisan U.S. lawmakers, led by Reps. French Hill and Ann Wagner, have urged SEC Chair Paul Atkins to implement President Trump’s August 7, 2025 executive order enabling crypto 401(k) plans. In a September 22 letter, they ask the SEC to work with the Department of Labor to clarify how participant-directed defined-contribution plans can add private equity, real estate and digital assets while safeguarding worker protections. The DOL’s withdrawal of its 2022 guidance on cautious crypto adoption leaves regulators neutral. With the U.S. defined-contribution market holding $12 trillion across over 90 million Americans, even a 1 percent crypto allocation could channel billions into crypto ETFs and digital assets. Enabling crypto 401(k) plans may democratize retirement savings, spur mass adoption, and boost indirect exposure via ETFs, though volatility, custody and valuation challenges pose legal and operational risks. Traders should watch for SEC rulemaking, DOL clarifications and the launch of compliant crypto wallet solutions.
Bullish
This push for crypto 401(k) plans signals growing institutional acceptance and potential billions flowing into digital assets via retirement funds. In the short term, clear guidance from the SEC and Department of Labor could spur demand for crypto ETFs and tokens, lifting prices. Over the long term, opening a $12 trillion defined-contribution market to cryptocurrencies may drive sustained inflows, broad adoption and infrastructure growth, underpinning bullish trends despite volatility and regulatory hurdles.