Bill Permits Crypto in 401(k) Plans by Codifying EO 14330
The Retirement Investment Choice Act would codify Executive Order 14330 and allow crypto in 401(k) plans. It gives plan fiduciaries the authority to include regulated digital assets such as Bitcoin alongside stocks and bonds.
The bill directs the Department of Labor (DOL) and the Securities and Exchange Commission (SEC) to revisit and update 2021 guidance that limited alternative asset allocations. If enacted, the law could open crypto in 401(k) access for nearly 90 million Americans and channel billions of dollars into digital assets.
Supporters argue that codification ensures policy permanence and broadens retirement planning options. Critics warn that high volatility demands robust safeguards. Next steps include DOL and SEC rulemaking and the development of compliant retirement products. The measure marks a key milestone for mainstream integration of digital assets in 401(k) plans.
Bullish
This bill paves the way for large-scale capital inflows as nearly 90 million Americans could allocate part of their retirement savings to crypto. The directive for DOL and SEC to update guidance signals regulatory clarity, which typically underpins bullish sentiment for Bitcoin. In the short term, markets may rally on the prospect of new institutional demand and product launches. Over the long term, permanent inclusion of digital assets in 401(k) plans could secure steady investment flows, reinforcing market stability and supporting price growth.