Matt Hougan Defends Bitcoin in 401(k)s While Warren Presses SEC

TLDR

• Bitwise CIO Matt Hougan criticized efforts to exclude Bitcoin from 401(k) retirement plans.
• Hougan argued that Bitcoin is less volatile than some tech stocks like Nvidia.
• He called restrictions on Bitcoin in retirement accounts unfair and inconsistent.
• U.S. Senator Elizabeth Warren sent a letter to the SEC demanding answers about crypto-related risks.
• Warren warned that crypto in 401(k)s could lead to high fees and investor losses.

Bitwise CIO Matt Hougan criticized opposition to Bitcoin in 401(k) plans, calling restrictions by firms and regulators “ridiculous.” U.S. Senator Elizabeth Warren demanded clarity from the SEC on crypto-related risks in retirement funds, continuing a long-running debate over whether cryptocurrencies should be allowed in defined-contribution plans for American workers.

Hougan Defends Bitcoin’s Place in Retirement Portfolios

Bitwise’s Chief Investment Officer Matt Hougan challenged efforts to exclude Bitcoin from 401(k) investments during an Investopedia Express Live interview on Monday. He argued that denying access to Bitcoin due to volatility is unjustified, especially when traditional stocks face wider price swings.  “This is just another asset,” Hougan said while highlighting Bitcoin’s performance against certain high-growth tech stocks.

He pointed out that Nvidia stock swung 120% between April and October 2025, moving from $94.31 to over $207. Bitcoin, in the same period, rose from $76,000 to $126,080, a 65% move. Hougan stated that despite this, there is no ban on Nvidia in retirement accounts, which reveals a double standard.

Hougan described previous efforts by firms like Vanguard to restrict Bitcoin in retirement plans as misguided.

Warren Demands SEC Answers on Crypto Oversight

U.S. Senator Elizabeth Warren raised concerns about crypto assets in retirement plans in an open letter to the SEC on Monday. She requested a response from SEC Chair Paul Atkins by January 27 regarding how the regulator assesses volatility and manipulation in crypto markets. Warren asked if the SEC considers volatility in company valuations when crypto holdings are involved.

She also urged the SEC to release materials to educate investors on potential risks with crypto-based investments. Warren warned that crypto in retirement accounts could harm American workers.

Warren argued that higher fees and expenses often linked to crypto could lead to poor outcomes for investors. Her questions reflect ongoing concerns over safeguarding retirement funds. The senator has been a vocal critic of crypto integration into traditional finance.

Crypto’s Future in 401(k)s Still Developing

While the Department of Labor previously discouraged crypto in 401(k)s, its stance has shifted. In May, it adopted a neutral position, revoking a 2022 compliance bulletin that advised against such investments. The Employee Benefits Security Administration stated it neither supports nor opposes the move.

Hougan said the timeline for broad adoption remains unclear but expects normalization to occur eventually.

Interest in offering Bitcoin in retirement accounts has grown following an executive order by former President Donald Trump in 2025. The order directed the Labor Department to reevaluate restrictions on alternative assets in defined-contribution plans. This created a path for firms to explore crypto offerings in 401(k)s.

Crypto companies view retirement plans as a route to reach more retail investors. They also see it as a step toward establishing legitimacy in the financial system. Hougan said progress is slow, but the direction is clear.

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