A bipartisan group of U.S. lawmakers are urging the Securities and Exchange Commission (SEC) to take swift action on President Trump's executive order that aims to allow cryptocurrencies in 401(k) retirement plans. The lawmakers are requesting clarity on the regulatory implications of integrating digital assets into employer-sponsored retirement accounts.
The executive order, signed on August 7, 2025, directs the Department of Labor (DOL) to broaden access to alternative assets, including cryptocurrencies, within 401(k) plans. The policy explicitly supports the idea that Americans preparing for retirement should have access to investment opportunities beyond traditional stocks and bonds. It aims to give everyday savers the freedom to invest a portion of their retirement funds into assets they believe in, including Bitcoin.
On September 22, 2025, led by Chairman French Hill and Subcommittee on Capital Markets Chairman Ann Wagner, nine members of the House Financial Services Committee sent a letter to SEC Chair Paul Atkins. They encouraged the SEC to work with the Department of Labor to revise regulations and guidance to make alternative investments accessible. The lawmakers are hopeful that these actions will help the 90 million Americans who are currently restricted from investing in alternative assets to secure a comfortable retirement.
The lawmakers are requesting the SEC to review bipartisan legislation concerning accredited investors advanced in the 119th Congress. Trump's executive order directs the Secretary of Labor to consult with the SEC to determine necessary regulatory changes. The order also instructs the SEC to facilitate alternative asset access by revising applicable regulations and guidance, potentially including adjustments to accredited investor and qualified purchaser status modifications.
If the executive order is implemented, it could mark a significant moment for Bitcoin adoption in the United States. For decades, Americans saving for retirement have primarily held assets denominated in fiat currency. Opening 401(k) plans to Bitcoin would provide savers with a way to align their long-term wealth with a scarce, non-sovereign asset.
Schroders' 2025 U.S. Retirement Survey indicates a notable increase from 2024 levels since the order. Forty-five percent of plan participants surveyed said they would invest in alternative options if available, up from 36% in 2024, and 77% of those interested said they would increase their contributions. However, the survey also revealed that most people have limited knowledge about private assets, with a common perception that they are risky.
As of March 31, the defined-contribution market had assets of $12.2 trillion, with $8.7 trillion in 401(k) plans. Even modest default allocations could generate substantial crypto demand through systematic payroll contributions and employer matches. For example, a 0.1% default allocation across 10% of plans would produce $1.22 billion in crypto investment flows.
