90 Million Americans May Soon Have the Opportunity to Add Bitcoin to Their 401(k) Investments

The U.S. Securities and Exchange Commission (SEC) is under increasing calls to revise regulations that would permit

and additional alternative assets to be included in 401(k) retirement funds, following an executive order signed by former President Donald Trump on August 7, 2025. This order directs the SEC, Department of Labor (DOL), and Treasury to modernize rules that would enable access to cryptocurrencies, private equity, and real estate within retirement accounts title5 [ 5 ]. The initiative is part of a larger push to offer more investment choices to ordinary Americans, with lawmakers stressing the importance of making investment opportunities—once exclusive to institutional investors—available to everyone title6 [ 6 ].

This executive action reverses the DOL’s previous warnings from 2022, which cautioned against including cryptocurrencies in 401(k) plans due to concerns about volatility and custody risks title2 [ 2 ]. The new policy favors a “facts-and-circumstances” test, giving fiduciaries greater authority to consider options like Bitcoin ETFs. This regulatory change is backed by the SEC’s recent steps, such as the Spring 2025 regulatory agenda, which aims to clarify crypto-related rules and ease compliance requirements title3 [ 3 ]. The SEC is also looking at updating the accredited investor criteria, potentially widening access, as outlined in bipartisan measures progressing through Congress title6 [ 6 ].

Experts in the industry point to significant potential for growth. With $12.5 trillion currently in U.S. 401(k) plans, even a modest shift into Bitcoin could mean billions flowing into the digital asset market. For example, if Bitcoin were to represent just 10% of the $8 trillion 401(k) sector, it could result in as much as $800 billion moving into crypto, possibly driving Bitcoin’s value above $155,000 per coin title5 [ 5 ]. Michigan’s state pension fund, which has invested $74 million in Bitcoin and

ETFs, shows that institutional investors are already making cautious moves into digital assets title1 [ 1 ].

Nevertheless, there are still notable risks and challenges. Critics such as Boston College’s Alicia Munnell claim that Bitcoin’s unpredictable price swings and complexity make it an unsuitable choice for most participants in 401(k) plans title1 [ 1 ]. To protect retirement savers, regulations must take into account high fees, secure asset custody, and proper investor education. The DOL is expected to introduce safe harbor rules by early 2026, offering clearer protection for fiduciaries who meet necessary standards of care.

Several lawmakers, including French Hill, Chair of the House Financial Services Committee, and Representative Warren Davidson, are pressing for rapid completion of the new rules. They point out that 90 million Americans are currently barred from investing in alternative assets, limiting their opportunities to diversify or guard against inflation title6 [ 6 ]. Meanwhile, industry voices such as Mike Novogratz of Galaxy Digital describe the executive order as opening up a vast pool of investment for Bitcoin, with the market responding positively after the news title5 [ 5 ].

The timeline for widespread adoption remains unclear. While some companies, especially those with younger and more tech-focused employees, could act swiftly, a broad rollout will probably take several years. The DOL’s 180-day window for regulatory changes, combined with the need for compliant investment products and employer plan updates, suggests a gradual shift title1 [ 1 ]. Currently, self-directed brokerage options in 401(k)s and IRAs already offer limited crypto access, and ETFs such as iShares Bitcoin Trust (IBIT) and VanEck Ethereum ETF (ETHV) are gaining in popularity title4 [ 4 ].

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