Lawmakers Rally Behind Crypto: SEC Chair Urged To Allow Digital Assets In 401(k)s
The US Congress is shifting quickly to help President Donald Trump’s Executive Order 14330, signed on August 7, 2025, which is concentrated on “democratizing entry to different belongings, together with crypto, for 401(ok) Investors.”
This order mandates the Department of Labor (DOL) and the Securities and Exchange Commission (SEC) to decrease regulatory obstacles that at present forestall investments in different belongings—akin to non-public fairness, actual property, digital belongings, and commodities—from being included in 401(ok) retirement plans.
Congressional Push For Crypto In 401(k)s
In a joint letter signed by Republican Congressman French Hill and Democratic rating member Maxine Waters of the House Financial Services Committee, lawmakers expressed their endorsement of the Executive Order.
They highlighted the significance of offering all Americans with entry to different asset investments as a way to reinforce internet risk-adjusted returns on their retirement financial savings.
The letter emphasised that the Executive Order instructs the Secretary of Labor to work alongside the SEC to evaluate the necessity for regulatory changes. It additionally calls on the SEC to change its tips to facilitate entry to those alternative assets in participant-directed outlined contribution retirement plans.
The legislators urged the SEC to behave promptly, suggesting that revisions to present laws are important to permit 90 million Americans at present restricted from investing in different belongings to safe a extra dignified retirement.
However, the implementation of this Executive Order might face additional delays because the American Federation of Teachers (AFT) has publicly voiced its opposition to this initiative in addition to to the proposed cryptocurrency market structure bill, which has already encountered notable delays in Congress.
AFT Raises Alarm Over Executive Order
As reported by Bitcoinist on Wednesday, December 10, AFT President Randi Weingarten criticized the Executive Order, describing it as “as irresponsible as it’s reckless.”
The federation’s President additional expressed vital concern over the alleged dangers that this order poses to working households’ pensions and the broader financial system.
Weingarten identified that the present draft of the order raises “deep considerations” relating to retirement plans, together with these associated to the union’s personal pensions. Her argument facilities on the worry that advancing crypto legislation might pave the way in which for widespread fraud and unethical practices inside retirement schemes.
Among the precise worries talked about by the AFT is a provision permitting non-crypto corporations to situation inventory on the blockchain, thereby circumventing established regulatory frameworks for securities.
Weingarten warned that this might result in the erosion of conventional securities legal guidelines and doubtlessly disastrous outcomes. She cautioned that retirement plans, together with pensions and 401(ok) accounts, could be invested in unsafe belongings even beneath the guise of being conventional securities.
Featured picture from DALL-E, chart from TradingView.com
