SEC Urged to Act on Trump’s Order Allowing Crypto in 401(k) Plans

Nine members of the House Financial Services Committee are pressing the Securities and Exchange Commission (SEC) to swiftly implement President Donald Trump’s August 7 executive order that could open the door for Americans to invest in cryptocurrencies through 401(k) retirement plans.

Led by Committee Chairman French Hill and Subcommittee on Capital Markets Chair Ann Wagner, the lawmakers emphasized the importance of expanding retirement investment options beyond traditional assets. They urged SEC Chairman Paul Atkins to coordinate with the Department of Labor (DOL) to update rules for participant-directed defined-contribution plans. If enacted, the initiative could impact nearly 90 million U.S. retirement savers.

The representatives argued that retirement investors should have access to alternative assets, including digital currencies, when deemed suitable by fiduciaries. Alongside this push, bipartisan legislation in the 119th Congress aims to modernize the definition of “accredited investor,” potentially broadening access to private markets and digital assets.

Analysts highlight the potential for major crypto inflows if 401(k) plans adopt even minimal allocations. For instance, a 0.1% allocation across just 10% of plans could bring over $1 billion into the crypto market. Broader adoption could unlock tens of billions in investment. The so-called “stickiness” of 401(k) investments—where participants rarely change default allocations—further strengthens the potential impact. A 2025 Vanguard report shows that 84% of participants use target-date funds, with only 1% making trades in 2024, underscoring the influence of default portfolio structures.

If the SEC acts quickly, the executive order could transform U.S. retirement planning by aligning long-term portfolios with emerging asset classes. However, experts caution that regulatory updates and plan adjustments may take time, with meaningful changes unlikely before 2026.