Lawmakers are ramping up efforts to push the U.S. Securities and Exchange Commission (SEC) to swiftly implement President Trump’s recent executive order, which could open the door for Americans to invest in cryptocurrencies like Bitcoin within their 401(k) retirement accounts. This move follows Trump’s August 7 directive aiming to democratize access to alternative assets for the nation’s retirement savers.

The bipartisan group of lawmakers argues that the current restrictions on investing in alternative assets—such as cryptocurrencies—have limited the retirement options of millions of Americans. Their letter to the SEC highlights the fact that roughly 90 million U.S. retirement savers are unable to participate in these kinds of investments, which have demonstrated robust returns over the past decade. The proposed changes would let retirement plan participants diversify beyond conventional stocks and bonds, granting them new avenues for potential growth in an era marked by economic uncertainty and inflation.

The executive order instructs both the SEC and the Department of Labor to revise existing regulations and provide clearer guidance for 401(k) plans, which are defined-contribution retirement accounts primarily funded through systematic payroll contributions and employer matches. Analysts suggest that even a modest allocation of retirement funds to crypto—such as a 1% default allocation—could channel as much as $93 billion into the crypto market. Even smaller allocations could generate billions in investment flows, underscoring the scale of the potential shift.

The broader initiative is part of a legislative push to modernize how Americans can invest for retirement, including revisiting what it means to be an accredited investor. This could potentially remove longstanding barriers that have excluded everyday savers from accessing private markets and digital assets.

Supporters see this policy as a way to close the retirement savings gap and empower individuals with more control over their financial futures. However, some industry observers note that true changes to retirement plan structures may take time, with regulatory adjustments potentially delayed until 2026 or later. For now, the spotlight is on the SEC to act quickly and bring the promise of crypto-fueled retirements closer to reality.