SEC Urged to Allow Bitcoin in 401(k) Plans After Trump’s Order

TLDR

• House Republicans urge the SEC to quickly implement President Trump’s executive order on 401(k) retirement plans.
• The executive order aims to allow Bitcoin and other alternative assets in retirement savings accounts.
• Lawmakers emphasize the need for the SEC to update regulations and expand investment options for Americans.
• The policy could democratize access to Bitcoin and other digital assets for everyday retirement savers.
• The proposed changes are seen as a step toward modernizing retirement savings and aligning them with non-sovereign assets.

A coalition of House Republicans has called on the Securities and Exchange Commission (SEC) to implement President Trump’s recent executive order quickly. This order, signed on August 7, could allow millions of Americans to gain exposure to Bitcoin and other alternative assets through their 401(k) retirement accounts. The lawmakers aim to expand investment options in retirement plans by adding cryptocurrencies like Bitcoin.

Trump’s Order Expands 401(k) Investment Options

Trump’s Executive Order 14330 directs the SEC and Department of Labor (DOL) to modernize retirement plan regulations. The order specifically encourages expanding investment choices beyond traditional stocks and bonds. It stresses that retirement savers should have access to alternative assets if deemed appropriate by plan fiduciaries.

The policy opens the door for investments in assets such as Bitcoin. These assets, once reserved for wealthy investors, could now be available to everyday savers. With the executive order in place, many Americans would have the option to invest a portion of their retirement savings into Bitcoin and similar assets.

In a letter to SEC Chairman Paul Atkins, House lawmakers expressed strong support for the executive order. They called for the SEC to swiftly implement the changes and review current regulations. “We encourage the SEC to provide swift assistance to the Secretary of Labor and make any necessary revisions to its current regulations,” the letter said.

Lawmakers Push for Expansion of 401(k) Investment Options

Several lawmakers, including Rep. Warren Davidson, have been vocal advocates for incorporating Bitcoin into retirement portfolios. They view it as a way for Americans to hedge against inflation and long-term economic challenges. For years, U.S. retirement savers had few options outside of stocks and bonds, but this could change with the new policy.

By enabling Bitcoin investments in 401(k) plans, the policy aligns retirement funds with a non-sovereign asset. Bitcoin’s fixed supply provides a potential safeguard against the erosion of purchasing power. The move could mark a significant step in the broader adoption of cryptocurrency as a legitimate long-term investment tool.

The lawmakers also referenced bipartisan legislation in the 119th Congress that seeks to modernize the definition of “accredited investor.” This legislation could remove additional barriers for ordinary Americans to invest in private markets and digital assets. With these developments, the landscape of U.S. retirement saving may shift significantly.

If fully implemented, Trump’s 401(k) crypto order could redefine retirement planning. It would allow millions of Americans to invest in Bitcoin, potentially transforming the way retirement funds are structured. As the SEC considers the order’s impact, lawmakers hope these changes will democratize access to alternative investments.

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