Retirement Bill to Codify Trump Order Could Allow Bitcoin in 401(k) Plans

• Gives plan fiduciaries the authority to offer alternative assets, including cryptocurrencies, in retirement plans.

• Directs the Department of Labor and Securities and Exchange Commission to revisit 2021 guidance that limited alternative asset exposure.

• Could open access for nearly 90 million Americans and channel billions into digital assets, according to industry estimates.

Crypto in 401(k)s: The Retirement Investment Choice Act would allow crypto investments in workplace retirement plans—learn implications and next steps for savers.

Trump’s August 7 executive order lets Americans include alternative investments, like crypto, in retirement plans if allowed by fiduciaries.

Published: September 15, 2025 | Updated: September 15, 2025 | By COINOTAG

Overview: Representative Troy Downing has introduced the Retirement Investment Choice Act to codify Executive Order 14330 and permit alternative assets — including cryptocurrencies — in 401(k) plans where plan fiduciaries determine they are appropriate. The bill seeks to make the executive action statutory to provide permanence beyond changing administrations.

What is the Retirement Investment Choice Act and how does it enable crypto in 401(k)s?

Crypto in 401(k)s would be enabled by the Retirement Investment Choice Act by instructing the Department of Labor and the Securities and Exchange Commission to revisit and streamline rules that currently constrain alternative asset allocations. The law would let fiduciaries include regulated digital assets in retirement menus where consistent with plan duties.

How will regulators and agencies implement the change?

The bill tasks the DOL and SEC with reexamining guidance, including reinterpretation of the 2021 guidance under the prior administration that tightened alternative asset exposure in workplace plans. Regulators would be required to publish updated rules and clarifications for plan sponsors and fiduciaries, with practical guardrails to protect long-term retirement savers. Plain-text references: U.S. Department of Labor, Securities and Exchange Commission, American Securities Association, Bitwise.

The legislation’s backers argue a statutory solution reduces the risk that future executives or courts could reverse the policy. Congressman Troy Downing said, “I applaud President Trump for his leadership to democratize finance and am proud to be leading the effort in Congress to codify his EO and enshrine this move for generations to come.” André Dragosch, European Research Head at Bitwise, has noted that expanded 401(k) access could drive substantial capital flows into Bitcoin and other regulated digital assets.

Alternative assets gain ground

Alternative assets encompass real estate, commodities, private market shares, infrastructure projects, lifetime income solutions, and digital assets managed through active vehicles. The bill frames these options as tools fiduciaries may use to tailor portfolios, not mandates to replace traditional equities and bonds. Supporters emphasize diversification opportunities; critics stress volatility and the need for investor protections.

Who supports and who cautions?

Original cosponsors include Representatives Byron Donalds, Warren Davidson, Marlin Stutzman, Buddy Carter, and Barry Moore. The American Securities Association (ASA) released a statement praising the bill as an expansion of investment choices for retirement savers. Financial experts and retirement advisers warn that digital assets exhibit higher price volatility and regulatory uncertainty, which can disproportionately affect long-term retirement outcomes if not properly managed.

Crypto-friendly shift sparks interest

The bill arrives amid a broader push to integrate crypto into retirement accounts. In September, a group of lawmakers urged the SEC to accelerate implementation of Executive Order 14330 to enable nearly 90 million Americans to access alternative investments. Industry estimates cited by advocates suggest the move could bring in billions of dollars of new investment to digital assets, though precise figures depend on fiduciary adoption and product availability.

Neutral observers underline that regulatory clarity, custody standards, valuation practices, and participant protections will determine whether the inclusion of crypto becomes a prudent option for workplace retirement plans.

Frequently Asked Questions

Can employees add Bitcoin or other cryptocurrencies to their 401(k) under the new bill?

Not automatically. The Retirement Investment Choice Act would permit plan fiduciaries to offer cryptocurrencies, but any inclusion depends on the sponsor’s decision, regulatory guidance from the DOL and SEC, and availability of compliant investment products and custody solutions.

Will plan sponsors be liable if a crypto investment loses value?

Plan fiduciaries retain their existing duties to act prudently and in participants’ best interests. Updated DOL and SEC guidance would clarify when offering alternative assets meets those duties and what documentation and oversight are required to limit undue fiduciary risk.

Key Takeaways

• Legislation aims to codify EO 14330: The Retirement Investment Choice Act would convert the executive order into law, adding permanence to the policy.
• Regulatory revision required: The DOL and SEC are directed to update guidance that previously limited alternative assets in 401(k)s.
• Opportunities and risks: Inclusion of crypto could expand saver choices and capital flows, but fiduciary standards, volatility, and custody rules are critical safeguards.

Conclusion

The Retirement Investment Choice Act seeks to make crypto in 401(k)s a lawful option where fiduciaries determine it is suitable, directing the U.S. Department of Labor and the Securities and Exchange Commission to update prior guidance. The proposal balances wider investment choice with the need for regulatory guardrails; the next steps include agency rulemaking and market readiness. COINOTAG will monitor developments and provide updates as regulators and lawmakers move forward.

Also Read: California Signs Bill to Protect Unclaimed Crypto from Liquidation

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TAGGED: Cryptocurrency United States