* Lawmakers are urging the SEC to open the $12.5 trillion 401(k) retirement plan market to the possibility of investing in Bitcoin.
* Industry experts say Bitcoin may soon appear in regular 401(k) plans nationwide.
* Analysts expect that allocating just 1-3% of 401(k) plans could push the price of Bitcoin towards the massive target of $250,000.
Full text of the article:
U.S. lawmakers urged Paul Atkins of the SEC to implement a new executive order that could allow Americans to invest in Bitcoin and other digital assets within 401(k) retirement plans.
If approved, this step could unlock trillions of dollars of long-term retirement capital for the cryptocurrency market, potentially driving the price of Bitcoin towards $250,000.
Lawmakers are asking the SEC to open the $12.5 trillion 401(k) market to cryptocurrencies.
On December 11, U.S. lawmakers sent a formal letter to SEC Chairman Paul Atkins, showing their support for President Trump's executive order aimed at allowing alternative assets like Bitcoin in retirement plans.
The order, signed in August 2025, directs the Department of Labor and the SEC to update the rules that currently restrict what 401(k) plans can offer.
The aim of this speech is to provide ordinary workers with the same investment options that large pension funds enjoy. The value of U.S. 401(k) plans is approximately $12.5 trillion, and even a small opening to Bitcoin or other crypto assets could bring billions of dollars into the market.
Meanwhile, lawmakers have asked the SEC to expedite these changes so that people can invest in more than just stocks and bonds.
Institutional adoption may come faster than expected.
Industry experts believe that this policy shift could be a key turning point for cryptocurrencies in traditional finance. The CEO of Coinbase recently stated that Bitcoin and other cryptocurrencies will eventually become a natural part of '401(k) plans for everyone.'
Some companies are already preparing for this change. For example, ForUsAll has partnered with Coinbase Institutional to allow employees to allocate up to around 5% of their savings in a 401(k) plan to cryptocurrencies.
This indicates that the system is already in place and could expand rapidly if national rules are updated.
Small 401(k) allocations could push Bitcoin towards $250,000.
This shift complements other developments in the industry. U.S. Bitcoin spot ETFs from major companies like BlackRock and Fidelity now hold tens of billions of dollars and are widely available in Individual Retirement Accounts (IRAs) and brokerage accounts.
Both investors and retirement savers use these products to gain exposure to Bitcoin. If 401(k) plans also start adding Bitcoin, even in small amounts like 1-3%, it could bring tens of billions in new purchases.
Cryptocurrency analysts expect that such ongoing demand could drive the price of Bitcoin towards $250,000.
Investment Disclaimer: All shared opinions and views represent the author's personal perspectives on current market conditions. Please do your own research before making investment decisions. The author and the publication are not responsible for your financial choices.
