Lawmakers Push SEC Chair To Open $12.1T 401(k) Market to Crypto Under Trump’s EO

Core Insights - A bipartisan coalition of nine House lawmakers is urging the SEC to act on President Trump's directive to integrate cryptocurrency into the U.S. retirement system, specifically the $12 trillion 401(k) market [1][4]. Group 1: Legislative Actions - Lawmakers have sent a letter to SEC Chair Paul Atkins, requesting amendments to existing rules to implement Executive Order 14330, which aims to expand investment options in 401(k) plans [2][5]. - The executive order directs federal agencies to revisit guidance and remove barriers that have historically excluded alternative assets like Bitcoin from retirement plans [5][6]. Group 2: Market Overview - The U.S. retirement system currently holds approximately $12.1 trillion in 401(k) accounts, serving over 90 million Americans [3][4]. - Historically, 401(k) plans have been limited to traditional asset classes such as stocks, bonds, and mutual funds under the Employee Retirement Income Security Act (ERISA) [3][5]. Group 3: Potential Impact of Crypto - The letter from lawmakers emphasizes that broader diversification, including alternative assets, could enhance retirement outcomes for investors [5][6]. - Crypto has shown strong performance over the past decade, surpassing traditional assets like equities, bonds, and gold, which has led to increased interest in digital assets as retirement options [7]. Group 4: Future Expectations - If the SEC's guidance is implemented, it could mark a significant step toward mainstream adoption of cryptocurrency in the U.S. retirement market [8]. - Analysts anticipate that new rules could be established by early 2026, potentially allowing Bitcoin ETFs and other regulated digital asset products to be included in retirement portfolios [8].