US Congress Pushes SEC to Allow Bitcoin in 401(k) Plans
Lawmakers in Washington are stepping up pressure on the Securities and Exchange Commission. To open the door for Bitcoin and other digital assets in American retirement plans. The push reflects a broader political shift. Especially after President Donald Trump ordered the SEC and agencies to expand investment choices for 401(k) savers.
A formal letter sent on December 11 shows the momentum is real. Members of the House Financial Services Committee asked SEC Chair Paul Atkins to update long-standing rules. That currently limits retirement access to crypto. Their message was clear: millions of Americans want more options and regulators need to modernize the system to match today’s markets.
Lawmakers Lean Into Trump’s Retirement Directive
Congress’ latest move directly follows the White House’s 2025 executive order titled “Democratizing Access to Alternative Assets for 401(k) Investors.” The order told agencies to widen the range of investment products available in retirement plans. Explicitly naming cryptocurrencies alongside real estate and private equity. Lawmakers echoed that sentiment. They argued that retirement savers are still locked into outdated guardrails and should be free to choose assets. That matches their risk tolerance and long-term goals.
They also want the SEC to broaden the definition of an “accredited investor.” Instead of limiting participation to high net worth individuals. Congress suggests allowing people with relevant education, work experience, or professional certifications to qualify. If implemented, teachers, engineers, nurses and skilled workers could gain access to investment categories once reserved for the wealthy.
SEC Shows Signs of a Softer Stance on Crypto
The timing of this political pressure comes as the SEC signals a shift in how it treats digital assets . Under Paul Atkins, the agency has moved away from the heavy enforcement approach seen in previous years. Atkins has stated publicly that a large portion of cryptocurrencies should not be considered securities. It’s a key distinction that would allow them to be included more easily in retirement plans.
He also launched Project Crypto, an initiative aimed at clarifying digital asset classifications, trading rules and custody standards. Officials say the end goal is to build safeguards. That protects savers while giving the industry clearer regulatory lanes. The SEC is also reviewing broader reforms that could modernize approval pathways for new investment products. This includes crypto-based options for retirement accounts.
Growing Demand Meets Ongoing Skepticism
Even as policymakers push forward, critics warn the move could expose retirees to steep market swings. Crypto’s volatility, they argue, makes it a risky fit for long-term savings. Especially for workers who may not fully understand price fluctuations. Still, retirement providers report rising demand. Especially among younger workers who want digital assets included in their 401(k) menus. If regulators ultimately approve Bitcoin options for retirement plans. The shift could reshape how Americans save and how crypto fits into mainstream finance. Currently, the ball is in the SEC’s court and Congress is making it clear they expect action.
