Will Your 401(k) Embrace Crypto? Washington Urges SEC To Agree

Washington lawmakers are exerting substantial influence on the Securities and Trading network Commission (SEC) to allow access to the $12.5 trillion 401(k) retirement sector for crypto asset and other alternative assets.

In line with US President Donald Trump’s latest executive order, House Financial Services Committee Chairman French Hill and Ranking Member Maxine Waters urged SEC Chair Paul Atkins to fast-track the revision of rules to comply with the directive.

BREAKING: US legislators are calling on SEC to execute Trump’s executive order that permits Americans to invest their 401k retirement funds in Bitcoin and crypto asset.

Americans possess over $9 TRILLION in their 401k savings. pic.twitter.com/a9iohGvcBB

— BTC Archive (@BTC_Archive) September 22, 2025

In a message sent to Atkins on 22 September 2025, Hill and Waters urged the SEC to acknowledge FINRA (Financial Industry Regulatory Authority) certified professionals as accredited investors and broaden retirement access to various alternative assets.

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Trump’s Executive Order Opens Doors for 401(k) Crypto Entry

Trump’s executive order, signed on 7 August 2025, has drawn attention to the SEC, which may significantly alter how 90 million Americans invest through their 401(k) accounts.

The order instructs the Department of Labor to reevaluate ERISA (Employee Retirement Income Safety Act) regulations, seeking to facilitate investment in alternative assets such as private equity, real estate, and crypto by retirement savers.

To bring this to fruition, the Labor Secretary is collaborating with the Treasury, SEC, and other regulatory bodies to chart a path forward. If successful, this initiative could open a segment of the $43.4 trillion US retirement marketplace to investments that have previously been inaccessible.

In the meantime, legislators have supported this initiative, asserting that restricted access to alternatives diminishes returns and stifles innovation in retirement strategies. They believe that regulated exposure to these assets can enhance the resilience of portfolios and align them with contemporary markets.

The role of the SEC is crucial in this context, particularly concerning the redefinition of who qualifies as an “accredited trader.” Additionally, several bipartisan proposals are currently under consideration to expand this definition to possibly include individuals with specific qualifications, degrees, or those who succeed in SEC-sanctioned examinations.

This concept is not entirely new, as similar reforms were offered during Trump’s previous administration but were later abandoned under President Biden.

Industry organizations have continuously advocated for this change, contending that retirement plans focused solely on stocks and bonds fail to reflect the evolution of capital markets.

401ks obviously have actuarial disadvantages compared to pensions, as pensions aggregate longevity risk leveraging the law of large numbers, thus only paying out for the average life expectancy rather than requiring additional savings for instances of living longer than 90 https://t.co/z3loWxgbYZ

— Quantіan (@quantian1) August 23, 2024

At the same time, the order has delineated fiduciary duties for plan administrators, specifying how they can include alternative assets while safeguarding investors.

For crypto asset, this represents a transformative opportunity. Should crypto be integrated into 401(k) plans, it could create a substantial new capital stream and provide millions of Americans with exposure to crypto asset.

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SEC Reassesses Digital Asset Regulations And Company Earnings Reporting

The SEC is shifting its strategy. Under Chair Atkins, the agency is moving away from its previous litigation-heavy model and is favoring a more collaborative approach, particularly in terms of cryptocurrency.

Significant changes are underway as the SEC reconsiders how corporations disclose their earnings and how it governs digital assets.

In an interview with CNBS on 19 September 2025, Atkins stated that the agency is prioritizing reforms that may alleviate quarterly reporting requirements. This would grant crypto firms far greater autonomy in deciding their reporting timelines.

In addition, Atkins mentioned that semi-annual reporting is already standard for foreign corporations engaged in US markets.

This adjustment aligns with Trump’s advocacy on 15 September 2025, aimed at replacing quarterly reporting with biannual disclosures. With Republicans holding a 3-1 majority at the SEC, the proposal seems to have political backing.

NEW: TRUMP SAYS “SUBJECT TO SEC APPROVAL, COMPANIES AND CORPORATIONS SHOULD NO LONGER BE FORCED TO ‘REPORT’ ON A QUARTERLY BASIS (QUARTERLY REPORTING!), BUT RATHER TO REPORT ON A ‘SIX (6) MONTH BASIS.’“ pic.twitter.com/ywQVGbUx2x

— DEGEN UPDATE (@DegenerateNews) September 15, 2025

But that’s not all! Atkins is also introducing new guidelines for digital currency oversight. In a report dated 15 September 2025, Atkins announced the cessation of “regulation by enforcement,” a strategy that characterized Gary Gensler’s tenure.

Rather than initiating lawsuits, the SEC will now provide firms with early notifications of possible infractions, granting up to six months to rectify them before pursuing any measures.

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