US representative seeks to turn Trump’s 401(k) crypto executive order into law

A lawmaker in the US House of Representatives has reportedly introduced a bill that would codify — make into law — an executive order by President Donald Trump allowing alternative assets such as cryptocurrencies to be included in 401(k) retirement accounts.

Republican Representative Troy Downing introduced a draft bill in the House Financial Services Committee that would give Executive Order 14330 the force of law, Politico reported on Tuesday.

The order, which Trump issued on Aug. 7, says every American preparing for retirement should have access to funds that include “alternative assets” when deemed appropriate by a plan fiduciary.

Under the order, “alternative assets” include private market investments, real estate, commodities, infrastructure projects, lifetime income strategies and digital assets held through actively managed investment vehicles.

The executive order became effective on Aug. 7. Source: White House

An executive order sets the government priorities but lacks the force of statute and can be reversed by a successor or the courts. To make a policy permanent, Congress must pass a bill text in both chambers before it is signed into law.

Trump’s executive order on retirement assets says the Department of Labor, the Securities and Exchange Commission (SEC) and the Treasury Secretary must review and prioritize the guidance for 401(k) plans within six months.

The bill was introduced despite the US government shutdown, since Congress can still introduce and debate legislation during a funding lapse.

Related: Crypto in US 401(k) retirement plans may drive Bitcoin to $200K in 2025

Crypto moves to 401(k) plans 

The move to add alternative assets, including crypto, to US retirement accounts has been evolving for months. 

In May, the US Department of Labor withdrew Biden-era guidance that warned fiduciaries to be “extremely cautious” when considering crypto for 401(k) retirement plans. 

In September, about a month after Trump’s executive order, nine US lawmakers wrote a  letter to SEC Chair Paul Atkins, urging the agency to accelerate implementation of the order and “help the 90 million Americans that are currently restricted from investing in alternative assets to secure a dignified, comfortable retirement.”

In the US, the 401(k) plan is one of the most widely used employer-sponsored retirement savings programs. According to an Investment Company Institute (ICI) report from the second quarter of 2025 on US retirement market data, Americans held a total of $9.3 trillion in 401(k) accounts as of June 30.

While some experts say adding crypto and digital assets to 401(k) plans is risky, many in the crypto space are bullish on the idea.

André Dragosch, head of European research at Bitwise, told Cointelegraph in August that allowing cryptocurrency in US retirement plans could mark a major step for Bitcoin adoption and attract billions in new capital.

Magazine: Baby boomers worth $79T are finally getting on board with Bitcoin