Nine members of Congress are urging the enforcement of the executive order to include digital assets in American retirement funds.
US congressional representatives have issued a formal appeal to Securities and Exchange Commission Chairman Paul Atkins to accelerate the implementation of the executive order that would allow investments in Bitcoin and other digital assets within 401k retirement plans.
On September 22, a group of nine lawmakers—led by House Financial Services Committee Chairman French Hill and Capital Markets Subcommittee Chair Ann Wagner—sent an official letter to Atkins. The letter requests “swift assistance” from the Secretary of Labor and the necessary adjustments to current regulations and guidelines to facilitate the integration of digital assets into 401k plans.
The lawmakers emphasized that the presidential executive order issued in August, titled “Democratizing Access to Alternative Assets for 401(k) Investors,” tasked the SEC with making alternative assets such as cryptocurrencies more accessible within self-directed retirement plans, in compliance with accredited investor and qualified purchaser rules.
Potential economic impact
The implementation of Trump’s executive order could open up the $9.3 trillion US retirement market to Bitcoin and other digital assets, generating significant capital inflows into crypto investment products and positioning digital assets as a long-term investment strategy for 401k plans.
“We are hopeful that such actions will help the 90 million Americans that are currently restricted from investing in alternative assets to secure a dignified, comfortable retirement,” the nine lawmakers said.
Even a modest allocation of 1% of total 401(k) assets to cryptocurrencies could generate an inflow of $93 billion. This figure would surpass the $60.6 billion of capital that has flowed into spot Bitcoin ETFs since their launch.
Some public pension funds have already begun to gain exposure to digital assets in their portfolios. The Michigan State Retirement System continued expanding its holdings in spot ETFs, acquiring $10.7 million worth of the ARK 21Shares Bitcoin ETF in the second quarter. The fund also retained 460,000 shares of the Grayscale Ethereum Trust (ETHE), valued at around $15.6 million.
