The inclusion of Bitcoin in US 401(k) retirement plans has sparked intense debate. Industry leaders and lawmakers have voiced strong opinions on both sides of the issue.
Matt Hougan, CIO of Bitwise, has cited fears about Bitcoin’s volatility in retirement accounts. He pointed out that Bitcoin’s volatility is no more extreme than some popular stocks.
Hougan argued that volatility alone should not be a reason to exclude Bitcoin from retirement plans. He highlighted that stocks like Nvidia have shown even larger swings than Bitcoin.
For example, between April and October 2025, Bitcoin’s price fluctuated by 65%. In comparison, Nvidia’s stock experienced a 120% price movement during the same period.
SEC’s responsibility in managing crypto risks
Nonetheless, a US Senator, Elizabeth Warren, raised serious concerns over the riskiness of introducing crypto to 401(k)s. She asserts that 401(k) accounts should prioritize financial protection over risky investing.
Warren sent a letter to the SEC Chair, Paul Atkins, warning that cryptocurrencies would leave workers vulnerable to severe financial losses. She also mentioned that cryptocurrencies are expensive and unreliable.
The letter by Warren raised the question of the SEC regulating risks in crypto. She questioned the SEC’s measures to ensure the appropriate valuation of crypto assets in publicly traded firms.
This debate follows President Trump’s signed executive order in August 2025. The order directed the Labor Department to review rules for alternative investments in retirement plans.
The executive order made it possible to offer non-traditional assets like crypto in 401(k)s. Since then, the Labor Department has taken a neutral stance on crypto in retirement accounts.
Industry experts predict that crypto will eventually become a common option for retirement savings. They believe this will happen slowly, as institutions adjust to the idea.
“The move is inevitable,” said Hougan. “It’ll eventually be treated like any other asset.”
Nevertheless, Hougan emphasized that employers should make sure workers are well aware of the risks involved. He underlined the need to be properly educated on the volatility of crypto.
Bitcoin and crypto for retirement savings
The SEC and Labor Department, among other regulators, will have a significant role in terms of balancing protection and innovation. Their direction will dictate how new technologies in the financial sector can be incorporated safely into retirement plans.
The advocates say that Bitcoin and other cryptocurrencies are able to assist with diversified retirement savings. They think it would result in a higher long-term development of the workers’ retirement accounts.
Conversely, the opponents fear that the risks could increase to a level that would eclipse the possible rewards. According to them, the introduction of crypto into 401(k)s would risk the retirement security of most Americans.
The decision in this debate will play a major role in the future of retirement savings in the US. It is yet to be determined whether cryptocurrencies will remain in retirement plans.