Lawmakers are urging the Department of Labor (DOL) and the Securities and Exchange Commission (SEC) to clarify the rules around exposure to cryptocurrency and other alternative assets in 401(k) retirement plans. This push follows the issuance of an Executive Order by President Trump that encourages more investment options—including digital assets—for American savers.

The Executive Order, announced in August 2025, aims to democratize access to alternative assets such as private market investments, real estate, and cryptocurrencies. Lawmakers supporting this move argue that allowing these assets in 401(k) plans can offer broader diversification and potentially enhance returns for retirement savers when appropriately managed by plan fiduciaries.

A group of Republican lawmakers has sent letters to both the SEC and DOL, advocating for swift action to revise existing regulations. Their goal is to ensure that Americans preparing for retirement have the opportunity to include alternative assets in their portfolios if it aligns with their investment goals and risk tolerance.

The increased attention from lawmakers reflects growing interest in providing more flexibility for retirement plan participants. However, it also raises questions about the risks and regulatory challenges involved in adding volatile assets like cryptocurrencies to mainstream retirement accounts.

As the DOL and SEC consider their next steps, employers, plan sponsors, and retirement savers alike are closely watching for further guidance on how alternative assets, particularly cryptocurrencies, might fit within the framework of 401(k) plans in the future.