Congress Urges SEC to Allow Bitcoin in 401(k)s — $12.5T Retirement Pool Could Boost BTC
U.S. lawmakers have formally urged SEC Chair Paul Atkins to implement President Trump’s August 2025 executive order allowing Bitcoin and other cryptocurrencies as 401(k) investment options. Congress says revising Department of Labor and SEC rules would give ordinary savers access to the same alternative investments used by large pension funds. U.S. retirement plans hold roughly $12.5 trillion in 401(k) assets (and $43.4 trillion total retirement assets as of March 31, 2025). Analysts cited in the report estimate that modest allocations of 1–3% from these retirement pools could inject tens of billions of dollars of buying pressure into Bitcoin, potentially supporting new all-time highs. Technically, BTC recently pulled back from the $100k–$108k resistance zone and trades around $90k, above long-term weekly support near $76k. Momentum indicators (MACD) show bearish readings but signs of flattening, implying downside pressure may be easing. If BTC reclaims $100k–$108k and clears a pivot near $116k, chart structure points to a potential continuation toward roughly $131k. The article highlights potential market flow implications for institutional and retail allocations but also notes regulatory implementation uncertainty and execution risks.
Bullish
Allowing Bitcoin in 401(k) plans materially expands the potential buyer base by tapping an estimated $12.5 trillion in 401(k) assets (and $43.4 trillion in total U.S. retirement assets). Historical precedents — such as institutional ETF approvals and large custodian or corporate allocations — show that regulatory greenlights that broaden investor access often translate into significant net inflows and extended bull runs. Analysts’ estimates that 1–3% allocations would create tens of billions in demand are realistic and would be bullish for BTC price structure, particularly if technical reclaim levels ($100k–$108k, then $116k) hold. Short-term, markets could price in both the probability and timing of rule changes, producing volatility: an initial bullish premium on news and sharp rallies on concrete implementation steps, but pullbacks if regulatory hurdles or delays arise. Long-term, formal retirement adoption would deepen liquidity, reduce float volatility and likely raise BTC’s fair-value assumptions among institutional allocators. Risks: implementation could be slow, legal challenges may arise, and plan fiduciary rules could constrain allocations, tempering the speed/magnitude of flows. Overall, net effect favors a bullish outlook conditional on meaningful regulatory progress and practical plan-level integration.