Bipartisan lawmakers push U.S. SEC to permit crypto inside 401k plans

According to the lawmakers’ letter, the SEC should formally authorize crypto exposure within defined-contribution plans and update regulatory guidance so plan sponsors and brokerages can offer digital-asset investment options without fear of enforcement actions. Their appeal follows the presidential order instructing federal agencies to review rules that restrict crypto products in retirement vehicles and to align policy with broader national competitiveness goals.

Members of Congress argued that crypto inclusion in retirement plans could give savers more diversified options while allowing U.S. markets to keep pace with innovation. They also pressed the SEC to provide clarity on how fiduciary standards would apply when offering digital-asset options to workers.

The U.S. 401(k) system holds an estimated $12.5 trillion in assets, making it one of the largest pools of retirement capital in the world. Even limited, regulated exposure to Bitcoin or digital-asset funds within these plans could channel substantial inflows into the sector while giving everyday savers investment routes currently available only through taxable brokerage accounts.

Lawmakers noted that several large asset managers already offer spot crypto ETFs in retail channels, and argued that prohibiting them in employer plans creates an inconsistency between investment options available to workers and those open to the broader market.

Alongside the push for access, the congressional letter emphasized that regulators should develop clear standards for disclosures, custody safeguards and volatility warnings. Lawmakers said retirement savers “deserve both choice and protection,” urging the SEC to craft a framework that mitigates risks without blocking digital-asset exposure outright.

The debate centers on how to balance crypto’s historical volatility with its growing integration into mainstream financial products. Supporters say well-defined rules would allow plans to offer limited crypto allocations responsibly, while critics warn that digital-asset swings could harm long-term savers if guardrails are insufficient.

Crypto in retirement plans has been a regulatory flashpoint since 2022, when the Department of Labor under the Biden administration issued guidance warning plan sponsors against offering digital assets in 401(k) lineups, citing volatility, valuation challenges and custody risks. That guidance created a de-facto chill in the market, with most providers pausing crypto offerings even as asset managers expanded crypto products elsewhere.

The landscape shifted after Donald Trump’s executive order earlier this year directing agencies to review and revise policies that limit access to digital assets in retirement accounts. The order asked regulators to remove what the administration described as outdated restrictions that hinder innovation and to coordinate a federal approach to digital-asset oversight.

In their latest letter, lawmakers referenced that directive and argued the SEC has a responsibility to propose updated rules that reflect the current maturity of the market, including the existence of regulated spot Bitcoin ETFs and expanding institutional infrastructure.

The SEC has not yet indicated when or whether it will issue new guidance. Any rule change would likely include a public comment process and could require coordination with the Department of Labor, which oversees employer-sponsored plans under ERISA. Industry groups say clarity is needed before providers can design compliant retirement products that include digital assets.

The congressional pressure adds to a growing policy conversation over how crypto fits within long-term savings frameworks. Whether the SEC chooses to move quickly or cautiously, the outcome will shape how millions of U.S. workers can – or cannot – access crypto inside one of the largest retirement systems in the world.