U.S. lawmakers are pressing the Securities and Exchange Commission (SEC) to implement President Donald Trump’s recent executive order that opens the $12.5 trillion 401(k) retirement market to alternative assets, including cryptocurrency.
In a letter dated September 22, House Financial Services Committee Chairman French Hill and Ranking Member Maxine Waters urged SEC Chair Paul Atkins to move swiftly in revising rules to align with the directive.
The order specifically tasks the Labor Secretary, in coordination with the Treasury Department, the SEC, and other regulators, to clear the path for 401(k) participants to allocate part of their portfolios to private equity, real estate, digital assets, and other alternatives.
The push follows Trump’s August 7 executive order, which directs the Department of Labor to reconsider guidance under the Employee Retirement Income Security Act (ERISA).
Trump’s 401(k) Executive Order Puts SEC at Center of Retirement Market Overhaul
According to a White House fact sheet, total U.S. retirement assets reached $43.4 trillion as of March 31, 2025, but most savers remain restricted from accessing alternatives. Lawmakers argue that allowing measured allocations into these assets could enhance net risk-adjusted returns and modernize retirement investment strategies.
The policy is intended to broaden investment choices for the more than 90 million Americans who currently participate in employer-sponsored defined contribution plans.
The SEC is preparing a sweeping shift in both corporate disclosure rules and its approach to crypto regulation, marking a break from years of rigid oversight. Speaking on CNBC on September 19, SEC Chair Paul Atkins confirmed that the agency is prioritizing reforms that could loosen quarterly earnings requirements.
The SEC is signaling a major policy shift, moving away from the lawsuit-driven approach of its previous administration and toward a more collaborative stance with the crypto industry and public companies.
SEC Breaks With Gensler Era, Pledges Flexibility on Crypto and Corporate Disclosures