Senate and House committee leaders warn Labor Department policy risks exposing $10.1 trillion in retirement savings to volatile digital assets.
A bipartisan group of US lawmakers urged the Labor Department to reverse plans allowing cryptocurrencies in 401(k) retirement accounts. They cited extreme volatility, fraud risks, and insufficient regulatory safeguards for digital assets like ETH and other tokens.
The policy, proposed in March, stemmed from an August 2025 executive order directing agencies to expand access to alternative assets. Americans held $10.1 trillion in 401(k) plans at year-end 2024, according to the Investment Company Institute. Lawmakers also questioned potential conflicts of interest tied to the Trump administration.
Critics argued securities laws for traditional assets may not apply to crypto, leaving investors exposed. The letter highlighted weakened enforcement at agencies like the SEC, raising concerns over investor protection.