TL;DR
- S lawmakers push to allow Bitcoin in 401(k) retirement plans via updated SEC and Labor rules.
- The effort follows a Trump executive order to expand access to alternative assets like crypto.
- Changes would not be automatic; employers and plan providers would still control menu options.
Lawmakers in the United States Congress are pushing to revise retirement-plan rules so everyday savers can access Bitcoin and other digital assets through 401(k) accounts. The effort aims to modernize a regulatory framework that many lawmakers view as outdated and disconnected from current financial markets.
On December 12, 2025, members of the House Financial Services Committee sent a formal letter to SEC Chair Paul Atkins, urging the agency to update its rules. The proposal seeks to allow digital assets to qualify as eligible investments in defined-contribution retirement plans once regulatory barriers are addressed.
Supporters argue that current regulations limit diversification and prevent millions of workers from allocating long-term savings into emerging asset classes. According to lawmakers, existing rules fail to reflect how financial markets have evolved over the past decade.
Trump executive order adds political momentum
The congressional push follows President Donald Trump’s August 7, 2025 executive order, titled Democratizing Access to Alternative Assets for 401(k) Investors. The order directs federal agencies, including the SEC and the Department of Labor, to review restrictions that block alternative investments from retirement plans.
The document explicitly includes digital assets among eligible alternatives and encourages regulators to reassess long-standing investor qualification standards. The goal centers on expanding access while maintaining regulatory oversight and investor protection.
What changes could mean for retirement savers
Despite increased attention, the initiative does not immediately alter available 401(k) investment options. Even if regulators revise the rules, employers and plan providers would still control whether crypto-based products appear in retirement menus. Individual savers would also need to opt in actively.
Advocates say adding Bitcoin and related assets could offer broader diversification and exposure beyond stocks and bonds. Critics point to price swings, custody issues, and fiduciary responsibility, reinforcing the need for clear safeguards before wider adoption.
Legislation aims to lock in policy changes
Alongside the SEC letter, lawmakers are advancing proposals such as the Retirement Investment Choice Act, which would codify the executive order into federal law. The bill seeks to secure long-term access to alternative assets, including digital assets, within retirement accounts.
