Crypto in 401(k) retirement plans could become law if Congress passes a bill that codifies Executive Order 14330, allowing plan fiduciaries to include digital assets as “alternative assets.” The proposal aims to give retirement savers regulated access to crypto while federal agencies update guidance and oversight.
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Bill would codify Executive Order 14330 to permit digital assets in 401(k) plans.
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Representative Troy Downing introduced the draft in the House Financial Services Committee; agencies have six months for guidance under the order.
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Americans held $9.3 trillion in 401(k) accounts as of June 30, 2025 (Investment Company Institute data).
Crypto in 401(k) retirement plans: House bill would codify Trump’s executive order to permit digital assets in 401(k)s. Learn implications and next steps.
Published: Oct 14, 2025. Updated: Oct 14, 2025. Author/Organization: COINOTAG
How would crypto in 401(k) retirement plans become law?
Crypto in 401(k) retirement plans would become law if Congress enacts the draft bill introduced to the House Financial Services Committee that codifies Executive Order 14330. The bill would convert the executive order’s direction—encouraging access to “alternative assets” including digital assets—into a statutory requirement subject to congressional approval.
What does Executive Order 14330 require and who introduced the bill?
Executive Order 14330 directs the Department of Labor, the Securities and Exchange Commission (SEC) and the Treasury to prioritize guidance enabling 401(k) fiduciaries to consider alternative assets, including digital assets, where appropriate. Republican Representative Troy Downing introduced a draft bill in the House Financial Services Committee to give that executive order the force of law, according to plain-text reporting by Politico.
The executive order became effective on Aug. 7. Source: White House
How could federal agencies and regulators respond?
Under the executive order, agencies have defined timeframes to review and issue guidance. The Department of Labor, the SEC and Treasury are directed to evaluate existing rules and publish guidance or rulemaking to clarify fiduciary duties and permissible plan investments. This process aims to define custody, valuation and disclosure standards for digital assets held through actively managed investment vehicles.
Frequently Asked Questions
Can employers add cryptocurrencies to employee 401(k) plans now?
Employers can already explore offering digital-asset exposure through certain investment vehicles if fiduciaries determine it meets prudence standards, but widespread adoption depends on clearer regulatory guidance. In May 2025 the Department of Labor withdrew prior restrictive guidance, reducing a key barrier for plan sponsors.
Will cryptocurrencies be allowed in my 401(k) in 2025?
Regulatory change is ongoing. The executive order and the newly introduced bill set the policy direction, but implementation requires agency guidance or rulemaking and, potentially, congressional action. Many plan providers are evaluating options while awaiting formal standards.
Key Takeaways
- Legislative move: A draft bill introduced by Representative Troy Downing seeks to codify Executive Order 14330, moving policy from guidance toward statute.
- Regulatory process: The Department of Labor, SEC and Treasury are directed to prioritize guidance on alternative assets, including custody and fiduciary clarity.
- Market impact: With $9.3 trillion in 401(k) assets as of June 30, 2025 (Investment Company Institute), bringing crypto into retirement plans could shift institutional capital allocation if guidance permits.
Conclusion
The proposal to allow crypto in 401(k) retirement plans represents a significant regulatory and market development: the bill would convert Executive Order 14330 into statute, prompting federal agencies to provide implementation details for fiduciaries and plan sponsors. Industry experts, including André Dragosch, head of European research at Bitwise, have said that permitting crypto exposure in retirement plans could accelerate adoption and attract new capital. As agencies issue guidance and Congress debates the bill, plan sponsors and savers should monitor official statements from the Department of Labor, the SEC and the Treasury and prepare for updated compliance and disclosure requirements. COINOTAG will follow developments and publish updates as agencies release formal guidance and as the legislative process progresses.
