The US House Financial Services Committee has asked the SEC to update its regulations to allow Bitcoin and other cryptocurrencies to be legally invested in 401(k) retirement plans.
The US Congress is urging the SEC to allow pension funds to invest in Bitcoin.
The US Congress is urging the SEC to take action following President Trump's executive order.
On December 11th, the House Financial Services Committee sent a formal letter to the Chairman of the Securities and Exchange Commission ( SEC ), Paul Atkins , requesting an update to the regulatory framework to allow Bitcoin and other digital assets to be integrated into 401(k) retirement plans.
This move is XEM as a follow-up to President Donald Trump's August 2025 executive order titled "Democratizing Access to Alternative Assets for 401(k) Investors," which aims to expand American workers' access to alternative assets such as crypto, real estate, and private equity funds.
According to the executive order, all U.S. citizens have the right to choose to invest in non-traditional asset classes when they have the appropriate financial means, provided that fund managers ensure trust standards, risk assessment, and product transparency.
- A key point in the House proposal is to broaden the definition of an eligible investor, a long-standing barrier that has prevented many ordinary workers from accessing sophisticated financial products.
Accordingly, in addition to the wealthy (those with assets exceeding $1 million or income exceeding $200,000 per year), individuals with professional qualifications, financial experience, or who pass an investment aptitude test will also be allowed to participate in crypto-linked retirement funds.
This means that teachers, engineers, nurses, or skilled workers—those with basic financial literacy—will also be able to allocate a portion of their retirement portfolio to Bitcoin or other digital asset funds.
- A 401(k) is an employer-sponsored retirement savings program in the U.S. that allows employees to set aside a portion of their pre-tax salary for a fund, which is further contributed to by the company, and benefits from tax advantages, helping to build assets for old age.
SEC signals greater openness to digital assets
Under Chairman Paul Atkins, the SEC is demonstrating a softer and more constructive approach to digital assets.
- Atkins has launched initiatives to clearly define the line between digital assets as securities or commodities, and to establish a unified regulatory framework for custody, trading, and disclosure.
- The SEC recently officially released a draft framework for regulating the crypto market, aiming to establish a unified regulatory mechanism for the entire crypto market in the United States, while also granting more direct authority to the Commodity Futures Trading Commission (CFTC).
New opportunities for American workers?
Lawmakers argue that adding crypto to retirement portfolios helps diversify assets and increase long-term profitability, especially given the growing interest of young people in Bitcoin and digital assets.
However, critics remain concerned, arguing that crypto is extremely volatile and could cause people to lose a significant portion of their retirement funds if the market reverses. Some experts recommend setting maximum allocation limits (e.g., 5–10%) and requiring funds to be transparent about risks.
According to analysts, if the SEC approves the new regulations, Bitcoin could become a default asset in 401(k) schemes, alongside stocks, bonds, and ETFs. This would be a historic milestone, pushing crypto deeper into the US's more than $7 trillion retirement financial system.
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