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Republican Lawmaker Unveils Bill to Open 401(k) Retirement Plans to Bitcoin and Other Cryptocurrencies
- Republican Representative Troy Downing introduced the Retirement Investment Choice Act to codify President Trump’s executive order on retirement plans.
- The executive order directs financial agencies to facilitate access to cryptocurrency and alternative assets in 401(k) plans when determined appropriate to enhance returns.
- This bill would give the executive order’s directive the force of law, reversing the prior Biden administration’s cautionary stance on crypto in retirement savings.
Republican congressman Troy Downing (R-Mont) introduced the one-page Retirement Investment Choice Act on Tuesday, a bill that would give President Donald Trump’s August executive order on retirement plans “the force and effect of law,” according to a copy of the legislation.
The executive order directs the Labor Department, SEC, Treasury, and related agencies to clear a path for cryptocurrency, private equity, and other alternative assets in 401(k) plans when a provider determines such access is an appropriate way to enhance returns. Codification would convert that directive from executive policy into statute.
Read more: Ripple Launches $200K “Attackathon” to Expose Flaws in XRP Ledger Lending Protocol
Reversing Biden’s Crypto Policies
Trump’s executive order marked a clear shift from the prior administration. The Biden-era Labor Department warned employers about offering crypto in 401(k)s. The Trump administration reversed that posture in August and told financial regulators to facilitate access where appropriate.
This is according to news reported by Politico, citing people familiar with the matter. In an emailed statement, Downing said:
Alternative investments hold the transformative potential to supercharge the financial security of countless Americans saving for retirement. I applaud President Trump for his leadership to democratize finance and am proud to be leading the effort in Congress to codify his EO and enshrine this move for generations to come.
Troy Downing, (R-Mont) The bill does not mandate crypto or private equity in plans. Plan sponsors would decide whether to offer such options, and providers could see clearer legal footing to add Bitcoin and other crypto-linked products if they judge them suitable.
A person familiar with the matter described the bill’s purpose as adding “more permanency” to the policy. According to Politico, the measure has four Republican co-sponsors: Byron Donalds, Buddy Carter, Warren Davidson, and Barry Moore. There is no Senate companion at this time.
Currently, US lawmakers are pushing the Treasury Department to explore how to build and manage a federal Bitcoin reserve, as Trump signed a few months ago.
Related: Citi Steps Into Crypto: Banking Giant to Launch Digital Asset Custody by 2026
Author
José Oramas
José is a journalist and translator with a keen interest in blockchain and cryptocurrencies.
