Nine House Financial Services Committee Members Urge SEC for Swift Implementation of Crypto Investments in 401(k) Plans
Nine members of the House Financial Services Committee recently sent a letter to SEC Chairman Paul Atkins, urging swift implementation of President Donald Trump’s executive order enabling cryptocurrency investments in 401(k) retirement plans. The bipartisan coalition expressed support for expanding access to alternative assets to help 90 million Americans secure dignified retirement outcomes.
The letter, dated Sept. 22 and led by Committee Chairman French Hill and Subcommittee on Capital Markets Chairman Ann Wagner, commended the executive order’s policy, stating that every American preparing for retirement should have access to funds that include investments in alternative assets when deemed appropriate by the plan fiduciary.
Congressional Push for Regulatory Clarity
In their letter, the lawmakers encouraged the SEC to assist the Department of Labor in making necessary revisions to current regulations and guidance regarding alternative asset access in participant-directed defined-contribution retirement savings plans. They specifically requested a review of bipartisan legislation concerning accredited investors that was advanced in the 119th Congress.
Trump’s executive order directs the Secretary of Labor to consult with the SEC to determine necessary regulatory changes and instructs the SEC to facilitate alternative asset access by revising applicable regulations and guidance, potentially including modifications to accredited investor and qualified purchaser status.
With the defined-contribution market holding assets of $12.2 trillion as of March 31, the potential for crypto investment through 401(k) plans is significant. Even modest default allocations could generate substantial crypto demand through systematic payroll contributions and employer matches.
Implementation Mechanics
The executive order builds on the Labor Department’s May 28 rescission of its 2022 crypto compliance release, which advised fiduciaries to exercise caution regarding crypto menu design. Distribution of crypto investments is likely to occur through target date funds and collective investment trusts, where participant dollars flow automatically.
The signatories of the letter include Representatives Frank Lucas, Warren Davidson, Marlin Stutzman, Andrew Garbarino, Michael Lawler, Troy Downing, and Mike Haridopolos. The letter was also copied to Ranking Member Maxine Waters and Subcommittee Ranking Member Brad Sherman.
Implementation of cryptocurrency investments in 401(k) plans now depends on agency guidance, product filings, and recordkeeper integrations before plan committees can update investment policy statements to include crypto allocations.