Lawmakers urge the SEC to speed up crypto access in $12.5 trillion 401k retirement plans through new rules.
Trump’s order could allow millions of Americans to invest in crypto and other assets for retirement.
A 1% crypto allocation in 401k plans could add $93 billion to the market.
Nine U.S. lawmakers have urged the Securities and Exchange Commission (SEC) to move quickly on a recent executive order. The request focuses on expanding access to alternative assets, including cryptocurrencies, within retirement savings plans.
Lawmakers want the SEC to support the Department of Labor in implementing the changes. They also asked the SEC to revise existing rules and guidance that limit investor access.
Executive Order’s Scope and Goals
President Donald Trump’s August order directs agencies to make crypto and other alternatives available in participant-directed 401k plans. The directive encourages updates to rules on accredited investors and qualified purchasers. This effort could increase investment choices for over 90 million Americans saving through employer-sponsored plans. The White House reported U.S. retirement assets totaled $43.4 trillion as of March 2025.
The SEC must coordinate with the Treasury and Labor departments to update regulations. The goal is to pave the way for investors to access capital investment, real estate, and digital assets. Legislators emphasized the need for quick action, connecting retirement security with broader investment access.
Potential Market Impact
If implemented, the policy could open the $12.5 trillion 401k market to crypto. A modest allocation of 1% would mean $93 billion in potential inflows. This would exceed the $60.6 billion already invested in Bitcoin ETFs since January 2024. Recent state investment activity reflects rising institutional interest. Michigan’s Retirement System increased its crypto ETF holdings in the second quarter. It added $10.7 million in ARK 21Shares Bitcoin ETF and kept $15.6 million in Grayscale Ethereum Trust.
However, some states moved differently. Wisconsin’s Investment Board sold its BlackRock Bitcoin Trust shares after being an early crypto investor. In January, Nasdaq filed for an in-kind redemption rule for the BlackRock Bitcoin ETF, boosting efficiency. This mixed approach shows ongoing caution among public funds.
Regulatory Direction and Changes
Lawmakers also want the SEC to recognize more professionals as accredited investors. Current restrictions prevent many from accessing alternative investments. Several bills before Congress aim to expand eligibility by recognizing education or professional certifications. The SEC was urged to include these changes in upcoming rule updates.
SEC Chair Paul Atkins signaled support for regulatory adjustments. He proposed flexible corporate reporting and a less punitive crypto oversight strategy. The agency plans to give firms time to fix technical issues before enforcement.
These shifts indicate a move away from past regulatory approaches. A public hearing on crypto oversight is scheduled for October 17. Regulatory updates may soon allow Americans greater flexibility in how they invest for retirement. Read MoreNews, Crypto Live News, NewsNow, Regulation News, 401(k) retirement plans, crypto investment, Crypto market, cryptocurrency, Donald Trump, Executive Order, SEC Cryptonewsland – Your Daily Crypto News
