Members of the U.S. House Financial Services Committee have formally called on Securities and Exchange Commission (SEC) Chair Paul Atkins to revise existing regulations so that Bitcoin and other digital assets may be included in 401(k) retirement plans, aligning with President Donald Trump’s 2025 executive order aimed at broadening retirement investment options.
In a December 11, 2025 letter, Republicans and Democrats on the committee urged the SEC to act quickly to update rules that currently limit the types of investments available to defined-contribution plans. The letter emphasized that the SEC should move in concert with the U.S. Department of Labor (DOL) to implement regulatory changes necessary to allow retirement savers to allocate portions of their portfolios to alternative assets — including cryptocurrencies like Bitcoin.
Letter underscores Trump directive to broaden retirement investment access
The letter references President Trump’s August 7, 2025 executive order (EO 14330) on “Democratizing Access to Alternative Assets for 401(k) Investors,” which directs federal regulators, including the SEC and the Department of Labor, to explore ways to expand retirement plan investment options beyond stocks and bonds. The order explicitly notes that retirement savers should have access to alternative assets when plan fiduciaries determine such investments are suitable, opening the door for digital assets and other nontraditional assets.
Lawmakers argue that aligning SEC rules with the executive order will help 90 million Americans participating in employer-sponsored 401(k) plans gain access to a broader range of investment opportunities that could, in some market conditions, enhance return potential and diversification.
Accredited investor definition and coordinated rulemaking
In addition to urging revised 401(k) rules, the committee members called on the SEC to review and potentially modernize the definition of “accredited investor.” Current standards — largely unchanged for years — restrict access to alternative investment vehicles for many individual investors. The letter referenced several bipartisan bills in the 119th Congress aimed at expanding these criteria by recognizing additional certifications, professional designations, or SEC-administered exams as qualifiers for accredited investor status.
The lawmakers also requested greater coordination between the SEC and the Department of Labor to ensure that revised 401(k) retirement rules — along with changes to accredited investor standards — are implemented in a coherent and investor-friendly manner.
Market and policy implications
The push comes amid broader efforts by the Trump administration to modernize financial regulation and integrate digital assets into mainstream finance. Allowing Bitcoin and other regulated digital assets in 401(k) plans could reshape how Americans save for retirement, although it carries both potential benefits and risks.
Proponents argue expanded investment options could improve diversification and long-term returns for retirement savers. Critics, including some policymakers and financial analysts, caution that digital assets remain volatile and may not be suitable for all retirement investors without proper safeguards — a point underscored by letters from Senate Democrats warning about the risks of exposing retirement accounts to volatile private markets and cryptocurrencies.
What happens next
- SEC response and proposed rule changes: The SEC is expected to assess the committee’s letter and may initiate a formal rule-making process or issue guidance to facilitate retirement plan access to alternative assets.
- Interagency coordination: Efforts between the SEC and the Department of Labor could produce coordinated guidance on fiduciary duties and permissible asset categories under ERISA.
- Congressional oversight and legislation: Lawmakers may hold hearings and consider additional legislation to codify retirement investment reforms and address investor protection concerns.
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