Long-term studies suggest Bitcoin could move from 401(k) accounts into central bank reserves by 2030 and even reach reserve-currency status by 2050.
A group of House Republicans is pressing the Securities and Exchange Commission (SEC) to swiftly carry out President Donald Trump’s recently signed executive order that could bring Bitcoin into 401(k) retirement plans.
The order could expand access to Bitcoin in 401(k) retirement plans and other alternative assets, giving millions of Americans new portfolio choices.
In a letter dated September 22, lawmakers, including House Financial Services Committee Chairman French Hill and Subcommittee on Capital Markets Chair Ann Wagner, expressed support for Executive Order 14330, signed on August 7.
The order instructs regulators to revise rules so that participants in employer-sponsored retirement plans can diversify beyond conventional stocks and bonds.
“We are hopeful that such actions will help the 90 million Americans that are currently restricted from investing in alternative assets to secure a dignified, comfortable retirement,” the Republican lawmakers said.
The order sets a new policy that “every American preparing for retirement should have access to funds that include investments in alternative assets when the relevant plan fiduciary determines that such access provides an appropriate opportunity…to enhance the net risk-adjusted returns,” according to the White House directive.
Alternative assets, as defined in the order, cover private equity, real estate, commodities, infrastructure, and digital assets such as Bitcoin. For the roughly 90 million Americans enrolled in 401(k) retirement plans, the change could create exposure to markets long reserved for institutions and wealthy investors.
The lawmakers urged regulators to align with the Department of Labor (DOL) and revise guidance that currently limits such access. They also requested the SEC to review bipartisan House bills aimed at modernizing the definition of “accredited investor.”
These proposals would allow individuals with relevant licenses, professional experience, or examinations to qualify for private investments, rather than restricting access based largely on wealth thresholds.
Analysts noted that the letter could accelerate SEC timelines, effectively forcing regulators to create a clear pathway for digital assets in retirement accounts. Others pointed out that high fees, liquidity mismatches, and extreme volatility could complicate fiduciary responsibilities under ERISA, especially when offering Bitcoin in 401(k) retirement plans.
Rep. Warren Davidson, a longtime advocate of digital assets, has argued that Bitcoin offers savers a hedge against inflation and monetary debasement, while providing an option to align retirement portfolios with a scarce, non-sovereign asset. Some commentators observed the move could even eclipse spot Bitcoin ETFs in long-term flows, given that target-date funds automatically allocate retirement contributions.
Supporters of the executive order say the shift could democratize retirement investing by giving ordinary Americans access to strategies already available to public pension funds and university endowments. Trump’s order cites the need to reduce “regulatory burdens and litigation risk” that have discouraged plan fiduciaries from considering such allocations.
The White House has argued that allowing fiduciaries to weigh alternative assets could increase diversification and improve long-term returns. Administration officials also pointed to a 2020 Department of Labor information letter that had opened the door for limited private equity investments in defined contribution plans.
A separate review emphasized that Trump’s latest move effectively reverses the DOL’s 2021 supplemental guidance, which had urged caution over costs, valuations, and litigation risk.
Adding a broader perspective, a Deutsche Bank research paper concluded that Bitcoin and gold could coexist on central bank balance sheets by 2030, with volatility decreasing as institutional adoption increases.
The report compared Bitcoin’s trajectory to gold’s history, noting that both assets evolved from speculative to trusted stores of value.
VanEck’s head of digital assets, Matthew Sigel, projected that Bitcoin could reach $2.9 million by 2050 if it settles a meaningful share of global trade, supported by second-layer solutions that enable scalability.
On social media, Sigel stated that Bitcoin does not need to replace the US dollar to become a reserve asset, drawing parallels with gold’s transformation from a volatile commodity to a core reserve holding.
Skeptics caution that including volatile or opaque asset classes in retirement accounts could expose savers to higher costs and risks. Digital assets like Bitcoin, while gaining mainstream attention, remain prone to extreme price swings and uncertain regulation.
Reports also warned that fiduciaries could face legal challenges if investments underperform. The Department of Labor’s 2021 guidance, which discouraged private equity allocations in 401(k) plans, reflected concerns over high fees and complexity. Consumer protection advocates argue those risks remain, regardless of the new policy direction.
Industry experts note that expanding access will require regulators to strike a balance: providing flexibility for fiduciaries while ensuring robust safeguards against unsuitable products. “Democratizing access” may broaden choice, but it could also test the boundaries of fiduciary duty under the Employee Retirement Income Security Act (ERISA).
The executive order gives the DOL and SEC 180 days to review and update regulations. SEC Chair Atkins is scheduled to appear on Fox Business this week, where he is expected to address the potential impact on retirement savers.
If implemented, the policy would mark a significant shift in US retirement planning. For now, the debate signifies a broader tension between expanding investment choice and maintaining protections for everyday workers.
Whether Bitcoin in 401(k) retirement plans becomes a reality will depend on regulators — a decision that could redefine both U.S. retirement policy and Bitcoin’s role in the global financial system.
