US lawmakers are calling on Securities and Exchange Commission Chairman Paul Atkins to help accelerate the executive order that will allow crypto investments in US 401(k) retirement plans.
In a letter Monday, nine lawmakers, including House Financial Services Committee Chairman French Hill and Capital Markets Chairman Anne Wagner, said Atkins was asked to “provide rapid support” to the Labor Secretary and make necessary adjustments to current regulations and guidance.
They also said under President Donald Trump’s August executive order “democratize access to alternative assets for 401(k) investors,” the SEC was directed to make alternative assets, such as crypto, more accessible in its retirement plans for participants, taking into account the accredited investors and qualified buyer rules.
“We hope that such actions will support 90 million Americans who are currently restricted from investing in alternative assets to ensure dignified and comfortable retirement,” nine lawmakers said.
The move followed the reversal of the Labor Bureau’s anti-cryptography guidance in May, and called for extreme caution when including codes in retirement funds.
“All Americans preparing for retirement should access funds, including investments in alternative assets, if the relevant plan’s Fidiary believes that such access provides an appropriate opportunity to enhance net risk-adjusted returns.”
A modest allocation can see the flow to $100 billion crypto
Implementing Trump’s EO will open crypto into the 401(k) retirement market of USD 9.3 trillion and promote a major influx of crypto exchange sales products while placing crypto as a potential long-term investment strategy.
Related: ex-ftx exec plea deals are still at the heart of the trial
Even a 1% crypto allocation to $9.3 trillion held in the 401(k) plan could drive $93 billion inflows.
Some public pension funds already offer crypto exposure
Michigan’s retirement system cuts $10.7 million worth of ARK 21Shares Bitcoin ETFs in the second quarter and continues to expand Crypto ETF Holdings.
It also held 460,000 shares of Grayscale Ethereum Trust (ETHE), worth approximately $15.6 million.
But not everything is kept. The Wisconsin Investment Commission dropped its shares in BlackRock’s Ishares Bitcoin Trust ETF in the first quarter after being one of the first public pension funds to invest in crypto ETFs.
magazine: Can a tokenized inventory of Robinhood or Kraken really be decentralized?