Trump Opens the Door to Crypto in Retirement, What Are the Reactions?
U.S. Senator Elizabeth Warren is pressing the Securities and Exchange Commission to clarify how it plans to protect retirement savers, as the Trump administration pushes to expand access to cryptocurrencies within 401(k) plans.
In a letter sent Monday to SEC Chair Paul Atkins, Warren questioned how the agency intends to manage the risks associated with crypto assets if regulators move forward with allowing them into retirement portfolios. Her inquiry follows an executive order issued by President Donald Trump in August 2025 directing federal agencies to review existing rules governing retirement investments.
Warren warned that introducing cryptocurrencies into retirement plans could expose workers to higher fees, greater volatility, and weaker investor protections. She argued that most retirement savers are ill-equipped to absorb sharp losses, particularly in markets as volatile as crypto.
“There is little evidence that offering these alternative investments would improve outcomes for retirement savers,” Warren wrote, adding that the risks of substantial losses and opaque fee structures could outweigh any potential benefits.
The senator also raised concerns that the policy shift could weaken regulatory oversight just as crypto assets move closer to mainstream investment channels. She cautioned that proposed market-structure legislation could allow tokenized financial products to fall outside traditional securities rules, limiting the SEC’s ability to enforce disclosure requirements and monitor market behavior.
Warren further accused Trump of conflicts of interest tied to the crypto sector, arguing that his administration’s growing support for digital assets coincides with financial gains linked to Trump and his family. In her letter, she claimed that since the start of Trump’s second term, those interests have generated more than $1.2 billion in crypto-related gains.
The letter asks whether the SEC has assessed the prevalence of market manipulation in crypto trading, ensured fair-value accounting for companies holding digital assets, and expanded investor education resources as access potentially widens through retirement plans.
Crypto market volatility has remained a key point of contention. After reaching record highs in 2025, Bitcoin experienced a sharp pullback later in the year, reinforcing concerns among policymakers about whether assets subject to large price swings are suitable for long-term retirement savings. Bitcoin is currently trading near $91,000, according to CoinGecko.
Warren set a January 27 deadline for the SEC to respond, emphasizing that decisions made now could have long-lasting consequences for millions of Americans who rely on retirement accounts as a foundation of financial security.
Calling 401(k) plans “one of the primary pillars of retirement in the United States,” Warren warned that allowing volatile and complex crypto products into those accounts could put workers’ savings at risk at a scale measured in trillions of dollars.
