Congress Pushes SEC to Allow Crypto in 401(k) Plans
Lawmakers have formally asked the Securities and Exchange Commission to update its regulations to permit Bitcoin and other cryptocurrencies as selectable assets within 401(k) retirement plans. Proponents say allowing crypto in tax-advantaged accounts would give savers broader diversification and long-term exposure to digital assets, while critics warn of volatility and the need for robust custody and valuation standards.
The request forces the SEC to weigh investor protection and plan fiduciary responsibilities against demand for new retirement offerings. If the agency moves forward with rule changes or guidance, the financial industry could quickly respond with crypto-native retirement products, but implementation will hinge on how regulators address custody, recordkeeping, and disclosure requirements. The timeline remains uncertain as the SEC evaluates next steps.