Bitwise Slams Elizabeth Warren for Trying to Block Bitcoin Investment in 401(k)

Core Viewpoint - Crypto asset manager Bitwise has criticized Senator Elizabeth Warren's efforts to block Bitcoin investments in 401(k) retirement plans, arguing that her stance may hinder crypto adoption in mainstream finance [1][2]. Group 1: Criticism of Senator Warren - Matt Hougan, CIO of Bitwise, labeled Senator Warren's proposals as "ridiculous," asserting that volatility should not be a reason to block Bitcoin investments in retirement funds, as stocks also experience price swings [2][4]. - Senator Warren has expressed concerns to the SEC regarding the management of risks associated with cryptocurrencies in retirement accounts, suggesting that including crypto may not lead to better outcomes for savers [3][6]. Group 2: Regulatory Context - In August 2025, an executive order by U.S. President Donald Trump directed the Department of Labor to review restrictions on alternative assets, potentially allowing cryptocurrencies in 401(k) offerings [3]. - The inclusion of cryptocurrencies in retirement plans is a key objective for crypto firms, aiming for broader access to retail investors and greater acceptance of digital assets in mainstream finance [4][5]. Group 3: Market Dynamics - Hougan pointed out that Bitcoin has been less volatile over the past year compared to Nvidia stock, questioning the lack of restrictions on including Nvidia in 401(k) plans while targeting Bitcoin [4]. - Lawmakers are working on a crypto market structure bill, expected by the end of January 2026, which may further clarify the regulatory landscape for cryptocurrencies [5].