US lawmakers are asking the SEC to implement US President Donald Trump’s executive order opening the $12.5 trillion 401k retirement market to crypto investments. Back in August, Trump signed his executive order permitting crypto to be featured as an option for 401 (k)’s.
In their letter, Members of the Financial Services Committee praised the executive order for its potential to help Americans enhance their retirement savings and encourage the SEC to work with the Department of Labor to revise its regulations and guidance. The goal is to make these investments accessible to millions of Americans to prepare for retirement.
What the Financial Services Committee Had to Say on Crypto in 401k Plans
“We encourage the SEC to provide swift assistance to the Secretary of Labor and to make any necessary revisions to its current regulations and guidance,” the letter reads. “We also request the SEC review bipartisan legislation being advanced in the 119th Congress concerning accredited investors.’ We are hopeful that such actions will help the 90 million Americans who are currently restricted from investing in alternative assets to secure a dignified, comfortable retirement.”
The executive order will direct the US Labor Department to reevaluate the guidance value around alternative investment assets. The upcoming plans will be subject to the Employee Retirement Income Security Act of 1974. The US Labor Department will also be tasked with clarifying the Federal government’s position on allowing private allocation of funds via crypto in the 401(k) retirement plan. It also includes alternative holdings that are going to be a part of the executive order. Furthermore, the legislation allows private equity, real estate, and other alternative assets to be a part of the 401(k) plan.
Also Read: US, UK Announce Task Force to Cooperate on Crypto Regulation
Private allocation of crypto in 401k retirement plans will boost the digital assets market, making it turn bullish. Trump promised to make the United States the “crypto capital of the world,” emphasizing the need to embrace digital assets to drive economic growth and technological leadership. The latest executive order certainly pushes the US in that direction.