GOP Bill Aims To Add Crypto to 401(k) Retirement Plans

Rep. Troy Downing introduced legislation Tuesday to transform President Trump's August executive order on cryptocurrency into permanent federal law. The Retirement Investment Choice Act would grant the executive order full legal authority, opening doors for 401(k) providers to offer digital assets like Bitcoin and Ethereum to American retirement savers.

The one-page bill arrives as the $25 trillion U.S. retirement savings industry weighs exposure to alternative assets. Four Republican lawmakers joined Downing as cosponsors, including Reps. Byron Donalds, Buddy Carter, Warren Davidson and Barry Moore.

Trump's original order directed multiple agencies to explore pathways for cryptocurrency and private equity within retirement plans. The Labor Department, Securities and Exchange Commission, and Treasury Secretary received instructions to facilitate access where providers determine that such opportunities could enhance returns.

Downing emphasized the transformative potential of alternative investments for Americans planning their financial futures. The Montana congressman praised Trump's efforts to democratize finance and expressed pride in leading the congressional effort to codify the executive order for future generations.

The bill marks a significant departure from the previous administration's approach. During the Biden era, the Labor Department raised concerns that crypto's promise of outsized returns could cloud investor judgment and attract inexperienced participants, a stance later reversed under Trump.

Currently, Bitcoin and Ethereum exchange-traded funds remain the only directly crypto-exposed assets trading on Wall Street. However, numerous altcoin and meme coin products, including those tracking Solana and DOGE, are expected to gain SEC approval soon.

Analysts estimate that opening the retirement industry to crypto products could inject billions into the digital asset economy. An increasing number of publicly traded companies have already begun building massive digital asset treasuries, though such crypto-affiliated stocks have experienced both surges and spectacular crashes in recent months.

Despite Republicans controlling the White House and both chambers of Congress, passage remains uncertain. A similar effort to codify Trump's executive order establishing a strategic Bitcoin reserve has stalled in the House since March, with no Senate version of Downing's bill currently filed.

The legislation represents the latest push to integrate digital assets into traditional financial infrastructure. If passed, it would cement access to alternative investments as a matter of federal law rather than executive branch policy, subject to change with future administrations.