US lawmakers have called on the Securities and Exchange Commission chair Paul Atkins to help accelerate executive’s order that enables crypto investments in US 401 (K) retirement plans.
In Letter On Monday, nine lawmakers, including chairman of the House Financial Services Committee Committee French Hill and Subcomm Committee on Capital Markets Chairman Ann Wagner, said the Atkins were asked to “provide quick assistance” to the secretary of labor and to make any necessary adjustments to current regulations and guidance.
They also mentioned that under August eo by President Donald Trump In “Democratizing access to alternative properties for 401 (k) investors,” the SEC has been ordered to produce alternative properties such as crypto that are more accessible to participants who are directed at retiring plans, in consideration of accredited investors and qualified consumer policies.
“We hope these actions will help 90 million Americans currently restrict from investing in alternative ownership to secure a noble, comfortable retirement,” said nine lawmakers.
This step follows the return -viewed by the Labor Department Anti-Crypto guidance In May, warning fiduciaries that Extremely careful When Crypto is included in retirement funds.
“Each American preparing for retirement should have access to funds that include investments in alternative properties when the relevant plans that fit access to that such access provides an appropriate opportunity … To enhance net risk returns Frank D. Lucas, Warren Davidson, Marlin Stutzman, Andrew R. Garbarino, Michael V. Lawler, Tlaying Tlaying Downing,
A moderate allocation can see $ 100 billion flow to crypto
Trump’s EO implementation will open crypto to $ 9.3 trillion US 401 (K) retirement market, driving greater outflow with products exchanged by crypto exchange while positioning crypto as a potential long-term investment approach.
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Although a 1% crypto allocation to $ 9.3 trillion held at 401 (k) plans can drive $ 93 billion in flows, which is larger than $ 60.6 billion worth the capital to flow to Spot bitcoin exchange-traded funds Since launched in January 2024.
Some public pension funds have offered a crypto exposure
The State of Michigan Retirement System has continued to expand the Crypto ETF holders, which raised $ 10.7 million worth of Ark 21shares Bitcoin ETF in the second quarter.
It will also be held at 460,000 shares of the Grayscale Ethereum Trust (ETHE), which costs nearly $ 15.6 million.
However, not all will be held. The State of Wisconsin Investment Board already uploaded its shares In Blackrock’s ishares Bitcoin Trust ETF in the first quarter after becoming one of the first public pension funds to invest in Crypto ETFs.
