Congress Pushes SEC to Open 401(k) Plans to Bitcoin and Crypto Investments

• Congress is urging the SEC to allow Bitcoin and crypto assets in 401(k) retirement plans.
• The push follows a White House order expanding access to alternative investments.

Congress is pressing the U.S. Securities and Exchange Commission to update retirement investment rules so Bitcoin and other digital assets can be included in 401(k) plans. The effort follows a White House policy shift that reframed cryptocurrencies as eligible alternative investments alongside real estate and private equity.

On December 11, members of the House Financial Services Committee formally requested that SEC Chair Paul Atkins update securities regulations. The lawmakers want digital assets to be treated the same way as other alternative investments already permitted in retirement portfolios. According to the letter, existing rules no longer reflect market realities and limit investment choice for millions of workers.

The request follows a change in tone from Washington. Earlier this year, the White House directed agencies to broaden retirement investment options, explicitly naming cryptocurrencies as part of that effort.

Lawmakers Urge SEC To Align With White House Retirement Policy

Congressional pressure is based on an executive order signed by President Donald Trump in August 2025. The order directs federal agencies to increase access to alternative assets for 401(k) participants as long as the fiduciary standards are not compromised.

The policy emphasises that retirement savers need to have access to a broader range of investments when it is appropriate. At the same time, it places responsibility on plan managers to evaluate risk, the suitability of assets and expertise in operations. Cryptocurrencies emerged alongside private equity and real estate, marking a significant shift in federal recognition of digital assets.

Lawmakers argue that the SEC now needs to take action to ensure the directive is implemented. They also urged a change to the accredited investor framework. Current standards often limit alternative investments to high-net-worth persons. Congress wants the eligibility expanded to include workers with professional certifications, relevant industry experience, or who pass competency testing.

Such reforms, lawmakers said, would enable teachers, engineers, healthcare workers, and skilled tradespeople to enter markets that wealthier investors have long controlled. They also called for greater coordination between the SEC and the Department of Labour.

SEC Leadership Signals Softer Stance On Digital Assets

The request comes as the SEC shows signs of recalibrating  its approach to crypto oversight. Under Chair Paul Atkins, the agency has backed down from aggressive enforcement tactics and moved toward regulatory clarification.

One initiative, known as Project Crypto, is trying to create more clarity around categorising assets, trading, and custody. Atkins has publicly stated that many digital assets that are currently trading are not subject to the legal definition of securities. That distinction is important because there are fewer regulatory barriers for non-securities, especially in the area of retirement products.

In the meantime, the SEC is considering broader changes related to the approval and standards of disclosure of investment products. The authorities assert that protecting investors is core, especially for retirement investors. Clear disclosures and specified safeguards should accompany any change in the rules.

That requirement aligns with the broader market trend. Bitcoin is currently trading at over $92,000, following a 2.45% gain over the past day. Ethereum added approximately 1.68% to $3,240. Meme tokens also performed well, with CoinMarketCap data indicating an 8% increase in market capitalisation.