Nine US lawmakers have called on the Securities and Exchange Commission (SEC) Chair Paul Atkins to expedite efforts on the executive order aimed at allowing cryptocurrency investments in US 401(k) retirement plans.
In a letter sent on Monday, several Congress members including House Financial Services Committee Chairman French Hill and Subcommittee on Capital Markets Chairman Ann Wagner urged Atkins to provide prompt support to the Labor Department and to update regulations and guidance as needed to enable these changes.
The lawmakers emphasized that President Donald Trump’s August executive order focused on democratizing access to alternative assets such as cryptocurrencies for 401(k) investors. The SEC is directed to make these assets more accessible within participant-directed retirement plans, while considering rules governing accredited investors and qualified purchasers.
The group expressed hope that these actions would benefit approximately 90 million Americans currently limited in their access to alternative asset investments, enabling them to build a secure and comfortable retirement.
This initiative follows the earlier reversal by the Labor Department in May of its previous cautionary guidance about including crypto in retirement funds, which had advised fiduciaries to exercise extreme caution.
The lawmakers, which also include Frank D. Lucas, Warren Davidson, Marlin Stutzman, Andrew R. Garbarino, Michael V. Lawler, Troy Downing, and Mike Haridopolos, stressed that all Americans preparing for retirement should have opportunities to invest in alternative assets when appropriate.
Significant Crypto Investment Potential from Modest Allocations
Implementing the executive order would open the door for cryptocurrencies to enter the massive $9.3 trillion US 401(k) retirement market. This shift could lead to substantial inflows into crypto exchange-traded products, positioning crypto as a compelling long-term investment avenue.
A conservative allocation of just 1% of the $9.3 trillion market to crypto could result in $93 billion of new capital inflows, dramatically exceeding the $60.6 billion invested in spot Bitcoin exchange-traded funds since their inception in January 2024.
Current Crypto Exposure in Public Pension Funds
Some public pension funds have already started embracing cryptocurrencies. The State of Michigan Retirement System notably increased its holdings by purchasing $10.7 million worth of the ARK 21Shares Bitcoin ETF during the second quarter.
Additionally, the system retained 460,000 shares of the Grayscale Ethereum Trust, valued at roughly $15.6 million.
However, not all pension funds have maintained their crypto investments. For example, the State of Wisconsin Investment Board sold its entire position in BlackRock’s iShares Bitcoin Trust ETF in Q1 after being an early adopter of crypto ETFs in its portfolio.
The lawmakers’ push to the SEC reflects a growing political and regulatory interest in broadening access to crypto as part of mainstream retirement savings opportunities, ultimately aiming to modernize investment options for American workers.
