Members of the U.S. House Financial Services Committee have formally called on Securities and Exchange Commission (SEC) Chair Paul Atkins to revise existing regulations so that $BTC Bitcoin and other digital assets may be included in 401(k) retirement plans, aligning with President Donald Trump’s 2025 executive order aimed at broadening retirement investment options.
In a December 11, 2025 letter, Republicans and Democrats on the committee urged the SEC to act quickly to update rules that currently limit the types of investments available to defined-contribution plans. The letter emphasized that the SEC should move in concert with the U.S. Department of Labor (DOL) to implement regulatory changes necessary to allow retirement savers to allocate portions of their portfolios to alternative assets — including cryptocurrencies like $BTC Bitcoin.
Letter underscores Trump directive to broaden retirement investment access:
The letter references President Trump’s August 7, 2025 executive order (EO 14330) on “Democratizing Access to Alternative Assets for 401(k) Investors,” which directs federal regulators, including the SEC and the Department of Labor, to explore ways to expand retirement plan investment options beyond stocks and bonds. The order explicitly notes that retirement savers should have access to alternative assets when plan fiduciaries determine such investments are suitable, opening the door for digital assets and other nontraditional assets.
Lawmakers argue that aligning SEC rules with the executive order will help 90 million Americans participating in employer-sponsored 401(k) plans gain access to a broader range of investment opportunities that could, in some market conditions, enhance return potential and diversification.
Market and policy implications:
The push comes amid broader efforts by the Trump administration to modernize financial regulation and integrate digital assets into mainstream finance. Allowing $BTC Bitcoin and other regulated digital assets in 401(k) plans could reshape how Americans save for retirement, although it carries both potential benefits and risks.
SEC response and proposed rule changes: The SEC is expected to assess the committee’s letter and may initiate a formal rule-making process or issue guidance to facilitate retirement plan access to alternative assets.
Interagency coordination: Efforts between the SEC and the Department of Labor could produce coordinated guidance on fiduciary duties and permissible asset categories under ERISA.
Congressional oversight and legislation: Lawmakers may hold hearings and consider additional legislation to codify retirement investment reforms and address investor protection concerns.
