U.S. lawmakers are putting pressure on the Securities and Exchange Commission (SEC) to implement President Donald Trump’s recent executive order that opens up the $12.5 trillion 401(k) retirement market to alternative assets, including cryptocurrency. In a letter dated September 22, House Financial Services Committee Chairman French Hill and Ranking Member Maxine Waters urged SEC Chair Paul Atkins to quickly revise rules to align with the directive.
The letter calls on the agency to recognize FINRA-certified professionals as accredited investors and to expand the scope of who qualifies for access to alternative assets within retirement plans.
The push comes after Trump’s August 7 executive order, which directs the Department of Labor to reconsider guidance under the Employee Retirement Income Security Act (ERISA). The order specifically instructs the Labor Secretary, in coordination with the Treasury Department, the SEC, and other regulators, to pave the way for 401(k) participants to allocate part of their portfolios to private equity, real estate, digital assets, and other alternatives.
The policy aims to broaden investment choices for the more than 90 million Americans who currently participate in employer-sponsored defined contribution plans. According to a White House fact sheet, total U.S. retirement assets reached $43.4 trillion as of March 31, 2025, but most savers are restricted from accessing alternatives.
Lawmakers argue that allowing measured allocations into these assets could enhance net risk-adjusted returns and modernize retirement investment strategies. The SEC is expected to play a central role in revising regulations, particularly around the accredited investor definition. Several bipartisan bills before Congress seek to expand the criteria, including measures to recognize professional licenses, education, or SEC-administered examinations as pathways to accreditation.
Hill and Waters urged Atkins to incorporate these legislative efforts into the agency’s rulemaking process. The move revives initiatives first introduced during Trump’s earlier term but later rolled back under President Biden. Industry groups have long advocated for such reforms, contending that retirement portfolios limited to stocks and bonds do not reflect the broader evolution of capital markets.
The order also clarifies fiduciary obligations for plan administrators who choose to include alternative assets. Regulators are expected to outline how retirement plan sponsors can provide such exposure while maintaining safeguards for investors.
For the cryptocurrency sector, the development represents a significant step toward mainstream adoption. While administrative hurdles remain, the inclusion of digital assets in retirement plans could create a new channel for capital inflows into the market, bringing crypto exposure to tens of millions of Americans saving for retirement.
The SEC is signaling a major policy shift, moving away from the lawsuit-driven approach of its previous administration and toward a more collaborative stance with the crypto industry and public companies. The SEC is preparing a sweeping shift in both corporate disclosure rules and its approach to crypto regulation, marking a break from years of rigid oversight.
SEC Chair Paul Atkins confirmed on CNBC on September 19 that the agency is prioritizing reforms that could loosen quarterly earnings requirements. The proposal would allow companies, including those in the crypto sector, greater flexibility to set reporting cadences in consultation with investors and banks. Atkins noted that semiannual reporting is already standard for foreign issuers trading in U.S. markets and called the adjustment “a good way forward.”
The move follows President Donald Trump’s renewed call on September 15 to replace quarterly earnings with semiannual disclosures, a change he argued would cut costs and reduce short-term pressures on executives. With Republicans holding a 3-1 advantage at the SEC, the proposal faces a favorable political landscape.
Atkins has also unveiled a new regulatory philosophy for crypto. In a report published on September 15, he stated that the SEC would end its “regulation by enforcement” approach, a hallmark of his predecessor Gary Gensler’s tenure. Instead, firms will receive preliminary notices of potential technical violations and up to six months to address issues before enforcement is considered.
Atkins rejected the broad classification of cryptocurrencies as securities, showing openness to tokenized stocks and bonds that mirror existing instruments. Since taking office in April, he has dropped several high-profile cases inherited from the Gensler era and launched a Crypto Task Force. The task force will hold a public hearing on October 17 to examine financial privacy and surveillance tools.
In conclusion, the SEC’s shift in approach to both retirement market regulations and crypto regulation represents a significant departure from previous administrations. By opening up the 401(k) market to alternative assets, including cryptocurrency, and adopting a more flexible stance on corporate disclosures and crypto oversight, the SEC is paving the way for a more inclusive and modernized investment landscape.