U.S. lawmakers pressure the SEC to expedite Trump encryption retirement plan implementation.

U.S. lawmakers have issued a strong call to SEC Chairman Paul Atkins, urging him to take swift action to advance President Trump’s executive order allowing the inclusion of Crypto Assets in 401(k) retirement plans. This move could open the door to crypto investments in the $9.3 trillion U.S. retirement market, attracting widespread market attention.

Congress members jointly press SEC to promote Crypto Assets retirement investment reform

On September 22, nine members of Congress, led by House Financial Services Committee Chairman French Hill and Capital Markets Subcommittee Chair Ann Wagner, sent a strongly worded letter to SEC Chairman Atkins. The letter urged Atkins to “swiftly assist” the Secretary of Labor and make necessary adjustments to existing regulations and guidance to implement the executive order signed by President Trump in August.

“This is not just about the issue of Crypto Assets, but an important initiative to provide more retirement options for 90 million Americans,” revealed a congressional aide involved in drafting the letter. “Lawmakers believe that the SEC's delays are hindering Americans from accessing potential higher returns.”

The letter specifically emphasizes that, according to President Trump's executive order, the SEC is explicitly instructed to consider modifying the accredited investor and qualified purchaser rules to make it easier for alternative assets like Crypto Assets to be accessed in participant-directed retirement plans.

“Every American preparing for retirement should have the right to access funds that include alternative asset investments, as long as the plan trustees believe that this approach provides appropriate opportunities… to improve net risk-adjusted returns,” the lawmakers stated in the letter.

Background of the Executive Order and the Shift in the Department of Labor's Position

President Trump signed an executive order in August this year, aiming to “provide a democratized alternative asset acquisition pathway for 401(k) investors,” marking a significant shift in the U.S. government's cryptocurrency policy. The order requires relevant departments to review and amend existing regulations to promote cryptocurrency investment in retirement plans.

It is worth noting that the U.S. Department of Labor rescinded its previous guidance on cryptocurrency in May of this year. This guidance had warned trustees to exercise extra caution when incorporating crypto assets into retirement funds, and it was seen in the industry as a significant barrier to crypto retirement investments.

“The Labor Department's change of position is an important first step, but if the SEC does not follow up, the entire reform will not be realized,” explained a crypto policy expert, “That's why lawmakers are now turning their attention to the SEC.”

Potential Market Impact: Hundreds of Billions of Dollars May Flow into the Crypto Assets Market

If Trump's executive order is fully implemented, Crypto Assets will enter the $9.3 trillion U.S. 401(k) retirement market, which could trigger a massive influx of funds into Crypto Assets exchange-traded products, while positioning Crypto Assets as part of a long-term investment strategy.

Financial analysts point out that even allocating just 1% of retirement assets to Crypto Assets could potentially lead to an inflow of about $93 billion. This figure far exceeds the $60.6 billion capital that has flowed into spot Bitcoin exchange-traded funds since their launch in January 2024.

“This is not just about numbers, but a fundamental shift in market perception,” said an executive at an asset management firm. “When Crypto Assets are seen as a legitimate retirement investment option, it will receive unprecedented institutional recognition.”

Current Status of Public Pension Fund's Crypto Investments

Some public pension funds have begun exploring investments in Crypto Assets. The Michigan Retirement System is actively expanding its Crypto ETF holdings, purchasing $10.7 million worth of ARK 21Shares Bitcoin ETF in the second quarter. The system also holds 460,000 shares of Grayscale Ethereum Trust (ETHE), valued at approximately $15.6 million.

However, not all retirement funds share the same stance. The Wisconsin Investment Board, although one of the first public retirement funds to invest in Crypto Assets ETFs, sold off its holdings in the BlackRock iShares Bitcoin Trust ETF shares in the first quarter of this year.

“The attitude of public pension funds towards Crypto Assets remains divided,” explained a pension advisor. “But if regulatory barriers are removed, we may see more funds allocate at least a small percentage, especially considering the successful performance of Bitcoin ETFs.”

Expert Opinions and Market Reactions

Crypto Assets experts are cautiously optimistic about this development. “This is another important milestone for the mainstream adoption of Crypto Assets,” said an analyst at a blockchain research institution, “but actual implementation may take time and could ultimately involve various restrictions and safeguards.”

Financial regulatory experts point out that the SEC faces the complex task of balancing innovation with investor protection. “Chairman Atkins has consistently emphasized the importance of investor protection,” commented a former SEC official, “even under political pressure, the SEC may insist on establishing a strict framework for investor education and risk disclosure.”

The market reacted positively to this development, with the prices of major crypto assets rising slightly after the news broke. Analysts believe that if the SEC takes proactive action, it could bring a new wave of upward momentum to the crypto market.