Bitwise CIO Defends Bitcoin In 401(k)s Amid Sen. Warren’s New Warning
While a senator presses the Securities and Exchange Commission (SEC) towards Bitcoin (BTC) and different cryptocurrencies in 401(okay) plans, Bitwise’s CEO has defended the Trump administration’s push to permit digital property’ inclusion in retirement funds.
Hougan Slams Bitcoin Restrictions In 401(k)s
On Monday, Bitwise CIO Matt Hougan discussed whether or not 2026 would be the yr buyers can personal Bitcoin and different cryptocurrencies in 401(okay) plans, because the inclusion of digital property is changing into extra widespread in particular person retirement accounts (IRAs).
In an interview, the manager argued that suppliers are “sluggish to maneuver,” however famous that the Trump administration’s pro-crypto shift, which eliminated “what was successfully a ban on Bitcoin from 401(k)s,” has opened the doorways.
Hougan identified that giant corporations like Vanguard had robust restrictions however have not too long ago relaxed their stance on Bitcoin investments. He argued that these bans are “ridiculous,” calling BTC “simply one other asset” that’s no extra unstable than shares, reminiscent of these of Nvidia.
Does it go up and down? Absolutely. Is there danger in it? Absolutely. But it’s really much less unstable during the last yr than Nvidia inventory. And you don’t see any guidelines about banning 401k suppliers from providing Nvidia inventory. That’s not that would appear ridiculous.
Recent K33 Research knowledge showed that Bitcoin recorded the least unstable yr within the asset’s historical past in 2025. Notably, BTC registered its lowest volatility degree final yr, with simply 2.24%.
“So, I don’t know if the 401(okay) suppliers will get all the best way to the purpose of truly placing it on this yr. These are very sluggish transferring establishments, however we’re transferring in that route and finally it’ll be normalized like different property, which is the way it ought to be handled,” he concluded.
Senator Warren Issues New Warning
Bitwise CEO’s remarks got here as Democratic Senator Elizabeth Warren reached out on to SEC chairman Paul Atkins to query how the Commission intends to guard buyers from potential monetary dangers now that crypto investments are allowed in retirement plans.
As reported by Bitcoinist, the Department of Labor (DOL) rescinded in May a 2022 steerage that discouraged fiduciaries from together with cryptocurrency investments in 401(okay) retirement plans.
Months later, US President Donald Trump signed an Executive Order (EO) that aimed to permit extra personal fairness, actual property, cryptocurrency, and different different property in 401(okay) retirement accounts.
The EO, signed on August 7, 2025, directed the DOL and the SEC to scale back regulatory obstacles that prohibited investments in different property of their outlined contribution retirement plans.
In a brand new letter, the anti-crypto senator shared her considerations, cautioning that permitting Bitcoin and different crypto property into these accounts might allow vital dangers. She listed the “volatility related to cryptocurrencies, the shortage of market transparency, and potential conflicts of curiosity” as causes to be cautious about introducing these property into retirement plans.
She additionally emphasised that 401(okay) plans are an important supply of retirement safety for many Americans. Therefore, they shouldn’t be handled as a “playground for monetary danger” that might put buyers in weak positions.
Despite Warren’s warnings, a number of US lawmakers have supported the Trump Administration’s efforts. In September, 9 House members requested Atkins to offer “swift help” in implementing the president’s govt order and work with the DOL to guard employees.
Later, House of Representatives member Troy Downing proposed a invoice to codify Trump’s directive, giving “the power and impact of regulation” and making it simpler for buyers to entry Bitcoin and different different property of their 401(okay) retirement plans.
