Republican Congressman Troy Downing R-Mont. announced plans to introduce the Retirement Investment Choice Act, a bill aimed at codifying President Donald Trump’s August 2025 executive order into permanent federal law.
This move would lock in the policy allowing cryptocurrency and other alternative assets — like private equity and real estate — to be included in 401(k) retirement plans, potentially unlocking trillions in institutional capital for the crypto market.
Signed on August 7, 2025, the order directs the Department of Labor (DOL) to revise guidance under the Employee Retirement Income Security Act (ERISA) of 1974. It encourages federal agencies, including the DOL, Treasury, and Securities and Exchange Commission (SEC), to facilitate access to alternative investments in participant-directed retirement plans.
This includes crypto ETFs, which were already approved for Bitcoin and Ethereum earlier in 2025. While the order doesn’t change 401(k) rules overnight — requiring regulatory rewrites that could take months — it signals a shift from the Biden-era caution on crypto’s volatility.
Employers and fund managers like BlackRock, Fidelity, TIAA have welcomed it for expanding investment options, though adoption may take years. The order also addresses “debanking” risks, instructing regulators to eliminate policies that deny services based on “reputation risk” tied to lawful activities like crypto involvement.
The Retirement Investment Choice Act would make the executive order’s provisions statutory, shielding them from reversal by future administrations. Downing described it as a way to “supercharge the financial security of countless Americans” through diverse assets.
Key GOP supporters include Reps. French Hill (R-Ark.) and Ann Wagner (R-Mo.), who in September 2025 sent a letter backing the order. This aligns with Trump’s pro-crypto stance, including his administration’s approval of spot Bitcoin ETFs and efforts to normalize digital assets.
Passage isn’t guaranteed in a divided Congress, but it reflects growing Republican support for crypto integration amid record ETF inflows (e.g., $5.95 billion globally by October 4, 2025, with $5 billion from the U.S.).
According to Bitwise Investments, U.S. 401(k) assets total over $10 trillion. A 1% allocation to crypto could channel $122 billion into the market. A 3% allocation could drive nearly $360 billion. This could accelerate mainstream adoption, with 90 million Americans potentially accessing Bitcoin via retirement accounts.
However, surveys show mixed sentiment: A Boldin poll found ~50% of Americans oppose adding crypto to 401(k)s due to volatility risks, echoing warnings from figures like Sen. Elizabeth Warren about weak protections and high fees.
Crypto’s price swings could erode retirement savings, reminiscent of 1929 stock market risks. DOL and SEC must align rules, and employers may hesitate to offer these options.
Critics argue it favors Wall Street over worker safeguards, potentially exposing trillions to speculative assets. This development marks a pivotal step toward embedding crypto in America’s retirement ecosystem, blending Trump’s deregulatory agenda with GOP efforts to future-proof it.
If passed, it could redefine how 55 million+ crypto users per the 2025 National Cryptocurrency Association report build wealth. President Trump’s August 7, 2025, executive order directs the Department of Labor (DOL), Treasury, and Securities and Exchange Commission (SEC) to revise ERISA-related guidance to facilitate the inclusion of alternative assets like cryptocurrencies, private equity, and real estate in participant-directed retirement plans.
ERISA mandates that fiduciaries plan like sponsors, employers act prudently, prioritizing participant interests. Historically, DOL guidance has cautioned against volatile assets like crypto due to risks, as seen in 2022’s Compliance Assistance Release No. 2022-01, which warned fiduciaries about including crypto in 401(k)s.
The executive order instructs the DOL to update interpretive bulletins to explicitly allow alternative assets in participant-directed plans (e.g., 401(k)s where employees choose investments). This includes crypto ETFs Bitcoin and Ethereum spot ETFs approved in 2025 and other non-traditional investments, provided they meet fiduciary standards.
Revisions aim to clarify that fiduciaries can offer crypto without violating ERISA’s prudence and diversification requirements, as long as participants have sufficient disclosures and risk education. The DOL is directed to issue guidance ensuring fiduciaries aren’t penalized for including crypto ETFs or similar assets.
The DOL, Treasury, and SEC are tasked with eliminating policies that restrict access to banking or custodial services for crypto-related retirement investments. This could involve amending ERISA’s custodial rules to ensure crypto custodians like Coinbase, BitGo can serve 401(k) plans.
Plan sponsors may need to provide educational resources to participants, ensuring informed decision-making, as crypto allocations could range from 1% to 3% of portfolios per Bitwise estimates.
The DOL’s Employee Benefits Security Administration (EBSA) will draft new interpretive bulletins or amend existing ones (e.g., Interpretive Bulletin 96-1 on participant investment education). Proposed rules will undergo a 30-60 day comment period, as required by the Administrative Procedure Act.
The Treasury via IRS and SEC will align tax and securities regulations, particularly for crypto ETFs and custodial arrangements. Expect initial guidance by Q1 2026, with full implementation potentially stretching to 2027, depending on regulatory complexity and political resistance.
The Retirement Investment Choice Act, announced October 14, 2025, by Rep. Troy Downing, aims to codify these changes into law, making them harder to reverse. The bill’s specifics are pending, but it will likely mirror the executive order’s language on fiduciary flexibility and debanking protections.
Allowing crypto in 401(k)s could drive $122 billion (1% allocation) to $360 billion (3% allocation) into crypto markets, per Bitwise Investments, boosting adoption across 90 million U.S. crypto users.
The DOL has not yet released draft guidance, but the executive order’s 180-day review period ending February 2026 sets a deadline for initial proposals. The Retirement Investment Choice Act’s introduction is imminent, with GOP support from Reps. French Hill and Ann Wagner, but passage in a divided Congress remains uncertain.
