SEC chair signals support for crypto access in 401(k) retirement plans

SEC Chair Paul Atkins has suggested a more open stance toward crypto inclusion in 401(k) retirement accounts, stating that conditions are now in place and that “the time is right to allow” such investments. 

In an interview, Paul Atkins stated, “We are looking to allow people to have access to 401(k) through professional management […] I think the time is right to go forward with that in  a measured way that has guardrails to protect the retirees.” 

SEC’s chair cites guardrails in 401(k) retirement plans 

President Trump signed an executive order in August, clearing the way for alternative assets, including cryptocurrencies like Bitcoin and private equity funds, to be offered more broadly in traditional retirement plans such as 401(k) plans.

However, this wasn’t well received by everyone, especially Democrats. As reported by Cryptopolitan, earlier this month, Massachusetts Democrat Senator Elizabeth Warren wrote to Atkins demanding explanations about how it would all play out.

“Given the threats from crypto’s volatility, the market’s lack of transparency, and potential conflicts of interest, I am concerned that the Trump Administration’s decision to allow these risky assets to be part of such critical retirement investments threatens millions of Americans’ retirement security,” she stated.

Warren cited a 2024 Government Accountability Office study that found crypto assets have uniquely high volatility. The study claimed that there is no standard approach for projecting the potential future returns of crypto assets.

In response to Warren’s concerns, Atkins said that many people are already exposed to them through their managed pension funds. Therefore, the goal is to carefully allow 401(k) plans to offer similar access, but only under professional management and with protections for retirees.

Several major unions have also publicly voiced their concerns, including the American Federation of Teachers and AFL-CIO. The unions are concerned that the administration’s plan to allow the tokenization of financial products could undermine the SEC’s authority to regulate securities, creating new risks for Americans’ retirement savings and investments.

Atkins stated, “We’re talking about the 401(k)s now, where we have to do things with respect to the different markets very carefully. We’re focused right now on private securities, private equity funds, and things like that, where, again, a lot of people are already exposed to those in their managed pension funds.” 

Small US companies  incorporate crypto in their retirement plan

So far, a few retirement plan providers have already incorporated crypto into their plans. One of the earliest movers is ForUsAll. It allows participating employers to offer crypto asset investments within 401(k) plans.

According to reports, 50 companies that are live on the platform are primarily smaller firms and crypto-native businesses. Employees are allowed to allocate 5% of their retirement savings to crypto assets. Custody and trading are handled through partnerships with institutional crypto firms such as Coinbase.

Additionally, Fidelity Investments, one of the largest 401(k) administrators in the US, has also taken similar steps. Fidelity introduced a Digital Assets Account that enables employers to offer Bitcoin exposure within their 401(k) plans if they choose to do so. However, although the infrastructure is in place, employers must approve, and allocations are generally limited to lower risk. 

Meanwhile, crypto inclusion in 401(k)s is far from mainstream. Major providers such as Vanguard have declined to offer direct crypto options, and many employers remain cautious due to regulatory uncertainty, fiduciary concerns, and market volatility. Overall, crypto in US retirement plans is still in an early, experimental phase rather than a standard feature.

SEC and CFTC collaboration meeting

SEC’s Chairman Paul S. Atkins and CFTC’s Chairman Michael S. Selig will hold a joint event today at CFTC headquarters. The agenda is to discuss harmonization between the two agencies and their efforts to deliver on President Trump’s promise to make the US the crypto capital of the world.

“For too long, market participants have been forced to navigate regulatory boundaries that are unclear in application and misaligned in design, based solely on legacy jurisdictional silos […] This event will build on our broader harmonization efforts to ensure that innovation takes root on American soil, under American law, and in service of American investors, consumers, and economic leadership,” Atkins and Selig submitted.

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