U.S. Congress Urges SEC to Include Cryptocurrencies in 401(k) Plans

According to PANews, the U.S. Congress is pressing the Securities and Exchange Commission (SEC) to approve the inclusion of Bitcoin and other cryptocurrencies in 401(k) retirement plans. On December 11, members of the House Financial Services Committee sent a letter to SEC Chairman Paul Atkins, urging an update to securities regulations to classify digital assets as an investment category equivalent to other alternative investments in retirement accounts. Lawmakers argue that Americans saving for retirement deserve more investment options, and current outdated and restrictive rules hinder millions from accessing new asset classes. The legislators also highlighted the need to redefine the standards for "qualified investors." Presently, stringent investor qualification requirements limit participation in certain private and alternative investment markets, typically accessible only to wealthy or high-net-worth individuals. Congress now seeks to expand these rules to include individuals with professional licenses, relevant work experience, or those who can pass competency exams. Additionally, lawmakers stated that the SEC should coordinate with the Department of Labor, which oversees retirement plan fiduciaries, to jointly develop regulations. They believe both agencies need to find a safe and responsible way to incorporate alternative assets into 401(k) investment options.