Nine US lawmakers are urging the SEC to implement Trump’s executive order, which will allow Americans to invest in crypto in 401(k) plans.
Nine US lawmakers are urging the Securities and Exchange Commission (SEC) to take action on President Donald Trump’s executive order to allow crypto in 401(k) plans.
The order aims to let Americans invest in alternative assets like crypto, real estate and commodities, through their retirement accounts.
Lawmakers say such measures could open opportunities for millions of investors.
On August 7 earlier this year, President Trump signed an executive order allowing 401(k) investors to access alternative investments like crypto.
The order instructed the Labour Secretary to consult with the Treasury Secretary, the SEC, and other regulators.
JUST IN:
US lawmakers ask SEC to implement President Trump's executive order opening the $12.5 trillion 401k retirement market to crypto. pic.twitter.com/aADcrfAjm2
— Watcher.Guru (@WatcherGuru) September 22, 2025
The goal was to clarify the Department of Labour’s position on adding alternative assets to retirement plans.
The SEC was specifically asked to look into ways to make investments in crypto and other alternative assets more accessible. This could involve updating current regulations or issuing new guidance.
A group of nine Republican lawmakers sent a letter to SEC Chair Paul Atkins on September 22. They urged the commission to act quickly and help the Labour Secretary implement the order.
In their letter, the lawmakers pointed out that the move could help roughly 90 million Americans who currently cannot invest in alternative assets through retirement plans.
The letter further stressed that allowing crypto in 401(k) plans could improve retirement savings for Americans. Lawmakers noted that modest allocations of crypto could improve net risk-adjusted returns when approved by plan fiduciaries.
They also encouraged the SEC to review definitions for accredited investors and qualified purchasers.
“We are hopeful that such actions will help Americans secure a dignified, comfortable retirement,” the letter read.
Implementing Trump’s executive order could open the $9.3 trillion US 401(k) market to crypto investments.
Even a 1% allocation could generate $93 billion in inflows. That amount is more than the $60.6 billion invested in spot Bitcoin ETFs since January of last year.
IT'S SIGNED: TRUMP UNLOCKS $12.5T FOR CRYPTO!
pic.twitter.com/D3CH1hojPR
— Coin Bureau (@coinbureau) August 7, 2025
Such a change could set up crypto as a long-term investment strategy for pensioners. Analysts even indicate that ETFs and other regulated crypto investment vehicles could see a rise in adoption among retirement funds.
The Labour Department previously advised fiduciaries to be careful when including crypto in retirement plans. In May, the department reversed its anti-crypto guidance, which opened the door for alternative investments.
The SEC’s role at this point is very important.
It must revise or clarify regulations for participant-directed retirement accounts. Lawmakers are already urging the commission to act quickly to avoid delays in access to crypto investments.
Even though this push is led by Republicans, some bipartisan efforts in Congress are focusing on the definition of accredited investors. These efforts could support the general public’s access to alternative assets beyond crypto.
The SEC may also consider working with Congress to make sure that regulations align with new laws and investor protections.
Overall, as regulators consider these changes, the market for crypto in 401(k) plans could expand very quickly over the next few years.
Early adoption may encourage both private and public retirement funds to diversify into digital assets. Investors, meanwhile, are watching to see when new options will become available.
The post Lawmakers Push SEC to Expand Crypto in 401(k) Retirement Plans appeared first on Live Bitcoin News.
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