Key Highlights
- In the latest letter, the House Financial Services Committee urged the SEC to change rules, requesting to allow Bitcoin and other cryptocurrencies in 401(k) retirement accounts.
- This request comes after U.S. President Donald Trump’s August executive order to democratize access to alternative assets like crypto for retirement plans
- The main purpose behind this letter is to redefine accredited investor rules
On December 11, the House Financial Services Committee sent a letter to the Securities and Exchange Commission Chairman Paul Atkins. They are demanding new rules that would allow Bitcoin and other digital assets to be included in 401(k) retirement plans.
🚨JUST IN: $9 TRILLION IS KNOCKING ON BITCOIN’S FRONT DOOR.
A new letter from Congress urges SEC Chair Paul Atkins to let Americans hold $BTC and crypto in their 401(k) retirement accounts immediately.
If this door opens, every plan sponsor, advisor, and asset manager is… pic.twitter.com/ViQYQe2YEh
— CryptosRus (@CryptosR_Us) December 11, 2025
Congress’s Letter for Amendments in 401(k) Plans
This congressional development is not happening on its own. It is a direct follow-up to an executive order signed by U.S. President Donald Trump in August 2025. That order, called “Democratizing Access to Alternative Assets for 401(k) Investors,” states that every American saving for retirement should have the chance to invest in alternative assets if it makes financial sense.
“Fiduciaries of 401(k) and other defined-contribution retirement plans must carefully vet and consider all aspects of private offerings, including investment managers’ capabilities, experiences, and effectiveness managing alternative asset investments. They do so to protect the Americans whose retirement accounts they administer and for whom they have fiduciary duties to invest safely and prudently,” stated in the executive order.
The order specifically mentions names of cryptocurrencies alongside private equity and real estate. The letter from Congress applauds this policy and tells the Securities and Exchange Commission (SEC) to help make it a reality quickly.
“We write to express our support for President Trump’s August 7, 2025, Executive Order 14330 on “Democratizing Access to Alternative Assets for 401(k) Investors” (EO). We applaud the EO’s policy “that every American preparing for retirement should have access to funds that include investments in alternative assets when the relevant plan fiduciary determines that such access provides an appropriate opportunity.. to enhance the net risk-adjusted returns,” stated in the letter.
One of the major highlights of these efforts is to change who is considered an “accredited investor.” Right now, strict rules block most people from investing in certain opportunities. But now Congress is working on many new laws to change this.
These laws would allow people with professional licenses, certain job experiences, or those who pass a special exam to qualify. This would open the door for teachers, nurses, and skilled workers to invest in assets previously reserved for the very wealthy.
“The EO directs the Secretary of Labor to consult with the Securities and Exchange Commission (SEC) to determine the necessity of parallel regulatory changes. The EO also directs the SEC to facilitate access to alternative assets for participant-directed defined-contribution retirement savings plans by revising its own applicable regulations and guidance, specifically noting that such facilitation may include consideration of accredited investor and qualified purchaser status,” stated in the letter.
The letter is a request to SEC Chair Paul Atkins. Under his leadership, the SEC has dropped its previous hostile stance and adopted a working approach to bring regulatory clarity. He has started “Project Crypto” to define how digital assets should be regulated.
In recent speeches, he has said that most crypto tokens traded today are not securities. This important distinction makes it easier for them to be included in retirement funds.
While this development is being celebrated by its supporters, some critics are still raising questions. They say that cryptocurrency is still too risky and unstable for something as critical as a retirement savings account. Furthermore, they mentioned the volatile nature of Bitcoin and other cryptocurrencies, which can lose value quickly.
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