In a significant development, a bipartisan coalition of US lawmakers has called upon the Securities and Exchange Commission (SEC) to expedite actions related to an executive order issued by President Donald Trump. The directive, signed on August 7, 2025, encourages federal regulators to review existing guidelines that have historically limited retirement savers’ access to alternative investments, including digital currencies.

Urgency from Lawmakers for SEC Intervention

On September 22, a group of nine House Representatives, spearheaded by French Hill and Ann Wagner, dispatched a letter to SEC Chair Paul Atkins. The correspondence emphasized the need for “prompt assistance” in executing the president’s mandate. They urged collaboration between the SEC and the Department of Labor to elucidate how participant-directed defined-contribution plans could incorporate private equity, real estate, and cryptocurrencies while safeguarding investors.

Implications of the Department of Labor’s Policy Shift

The Department of Labor’s recent policy change has set the stage for this initiative. In late May, it withdrew a 2022 advisory cautioning fiduciaries against adding cryptocurrencies to 401(k) offerings without rigorous scrutiny. This retraction has shifted the onus onto the SEC to establish definitive guidelines on integrating such investment options.

Enormous Market Potential

The US defined-contribution market, with an estimated value of approximately $12 trillion, serves over 90 million Americans. Introducing even a fraction of this market to cryptocurrencies could channel substantial capital into digital assets. Analysts have noted that a mere 1% allocation could inject billions of dollars into crypto markets, drawing considerable interest from plan sponsors and fund managers.

Concerns from Legal Experts and Analysts

Despite the potential financial influx, there are cautionary voices within the legal and financial sectors. Critics point to the inherent volatility of cryptocurrencies and the unique challenges they present in terms of record-keeping, valuation, and custodial arrangements. Some experts caution that without robust regulatory frameworks, incorporating these assets into retirement plans might expose sponsors to significant legal and financial liabilities. The industry remains divided, balancing optimism with a healthy dose of caution.