First Ledger, a decentralized exchange operating on the XRPL, made a striking comparison this week by stating that 401(k) and XRP serve a similar purpose in promoting long-term value growth.
In letters addressed to the Securities and Exchange Commission, nine lawmakers—including House committee chairs French Hill and Ann Wagner—requested SEC Chair Paul Atkins to respond to an executive order from US President Donald Trump focused on facilitating easier access for retirement plans to include cryptocurrency. This initiative could impact approximately 90 million Americans who hold 401(k) accounts.
Lawmakers Advocate for 401(k) Access
Reports indicate that the objective is to relax specific investor regulations to allow retirement plans to invest in alternative assets such as Bitcoin, Ethereum, and XRP.
Should these plans gain access, even minimal allocations could significantly impact markets. A proposed scenario suggests a 1% to 2% allocation from the $12 trillion 401(k) market could result in an influx of approximately $120 billion to $240 billion into crypto assets.
401k and XRP are basically the same thing https://t.co/JqtkHF4ovy
— First Ledger (@First_Ledger) September 22, 2025
Large Investments, Larger Analogies
To provide context: Bitcoin exchange-traded funds accumulated $57 billion since January 2024. During this timeframe, Bitcoin’s price reportedly soared from $45,000 to $124,457, while the global crypto market expanded from $1.65 trillion to over $4.17 trillion.
Reports also indicate that public retirement systems are beginning to integrate cryptocurrency exposure; for instance, the State of Michigan Retirement System has increased its stakes in Bitcoin and Ethereum trusts. Analysts suggest that such developments elevate the 401(k) conversation beyond theoretical discussions.
Retirement Allocation
According to an analysis referenced in August, if global retirement funds totaling around $50 trillion allocated 1%—approximately $500 billion—to XRP, a straightforward estimate could see its price approaching $12.
Considering broader multiplier effects, projections vary from $17 to $34. For comparison, another analysis suggests that a 2% allocation to Bitcoin might boost its price to about $175,000 and elevate Bitcoin’s market cap to nearly $3.4 trillion.
Retirement Funds Could Contribute Billions
Market experts argue that retirement investments would likely channel into ETFs rather than direct coin purchases. Paul Barron has proposed that 401(k) funds would initially flow into crypto ETFs, and others have noted that ETF access for XRP could be transformative.
This perspective hinges on the concept that ETFs are familiar, regulated instruments already utilized by many plans. First Ledger’s analogy positions XRP as a vehicle for long-term value transfer, equating the token’s function in cross-border settlements with the consistent goal of retirement savings.
Featured image from NWM, chart from TradingView
