Senator Elizabeth Warren has asked the SEC to clarify how it will protect investors as cryptocurrency and other alternative assets start appearing in 401(k) and other retirement accounts. Her request follows an executive order from August 2025 that encouraged federal regulators to make alternative assets, like crypto and private equity, easier to access.
Concerns About Risk
Warren said retirement accounts are meant to be stable and grow steadily over time. She pointed to a 2024 GAO report that showed crypto markets are very volatile and unpredictable.
She warned that including crypto in retirement plans could expose savers to high risk and extra fees. She also raised concerns that some policymakers with personal crypto investments might face conflicts of interest.
Regulation and Loopholes
Warren noted that new crypto regulations could leave loopholes. Some blockchain products might slip past SEC oversight, leaving retirement savers less protected. Labor groups, including the AFL-CIO and the American Federation of Teachers, have made similar points.
Questions for the SEC
In her letter, Warren asked the SEC to explain:
- How it plans to report fair values for crypto holdings.
- Whether it has looked at market manipulation in crypto and if it will share its findings.
- What educational resources are available for retirement savers using crypto.
The SEC has not commented on her letter.
What the SEC Says
SEC Chair Paul Atkins has said the agency wants to encourage innovation while keeping investors safe. He wants the U.S. to be a global leader in digital assets. At the same time, he says that fraud and manipulation will continue to be enforced under SEC rules.
Bottom Line
The issue shows the challenge of balancing new investment options with investor safety. Crypto may give retirement accounts new ways to diversify, but volatility, high fees, and unclear rules could put savers at risk. How the SEC responds will shape the future of digital assets in retirement accounts.
