A member of the US House of Representatives has introduced a bill aimed at codifying — turning into law — an executive order from President Donald Trump that permits alternative assets like cryptocurrencies to be included in 401(k) retirement accounts.
Republican Representative Troy Downing brought forth a draft bill in the House Financial Services Committee that seeks to give Executive Order 14330 legal authority, according to Politico on Tuesday.
This order, issued by Trump on August 7, states that every American planning for retirement should have the option to invest in “alternative assets” when appropriate, as determined by a plan fiduciary.
While an executive order defines government priorities, it doesn’t have the force of law and can be overturned by future administrations or through judicial decisions. For a policy to be permanent, it needs legislative approval from both congressional chambers before being enacted into law.
Trump’s executive order outlines that the Department of Labor, the Securities and Exchange Commission (SEC), and the Treasury Secretary must assess and prioritize guidance for 401(k) plans within six months.
The bill was introduced despite the current US government shutdown, as Congress is still able to submit and discuss legislation during funding lapses.
Related: Crypto in US 401(k) retirement plans may drive Bitcoin to $200K in 2025
Crypto moves to 401(k) plans
The initiative to incorporate alternative assets, including cryptocurrency, into US retirement accounts has been developing for several months.
In May, the US Department of Labor retracted guidance from the Biden administration that advised fiduciaries to be “extremely cautious” about including crypto in 401(k) retirement plans.
In September, around a month after Trump’s executive order, nine US lawmakers sent a letter to SEC Chair Paul Atkins, urging the agency to expedite the implementation of the order and “assist the 90 million Americans currently restricted from investing in alternative assets to achieve a dignified, comfortable retirement.”
In the US, the 401(k) plan is one of the most prevalent employer-sponsored retirement savings programs. An Investment Company Institute (ICI) report from Q2 2025 noted that Americans had a collective total of $9.3 trillion in 401(k) accounts as of June 30.
While some experts argue that adding crypto and digital assets to 401(k) plans is risky, many within the crypto community support the initiative.
André Dragosch, head of European research at Bitwise, told Cointelegraph in August that allowing cryptocurrency in US retirement plans could signify a substantial advancement for Bitcoin adoption and draw in billions of new investments.
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