Overview
- In a letter to SEC Chair Paul Atkins, Senator Elizabeth Warren warned that adding cryptocurrencies to 401(k) plans could cause workers to "lose big" due to volatility, higher fees, and limited transparency.
- The SEC declined to comment on the letter, while Atkins has publicly promoted a pro-innovation approach that he says will still prioritize investor protection.
- Policy shifts paved the way for crypto in retirement accounts after the Labor Department rescinded 2022 guidance in May 2025 and President Trump’s August 2025 executive order directed broader access to alternative assets.
- Industry voices pushed back, with Bitwise CIO Matt Hougan calling efforts to block Bitcoin in 401(k)s "ridiculous" and arguing recent Bitcoin swings were lower than some large-cap stocks such as Nvidia.
- Warren flagged concerns about pending market-structure legislation and a potential "tokenization" loophole, noted union opposition from the AFL-CIO and AFT, and alleged Trump and his family gained over $1.2 billion from crypto.