U.S. lawmakers have taken a significant step toward mainstream crypto adoption by formally urging the Securities and Exchange Commission (SEC) to implement an executive order that would permit Bitcoin and other cryptocurrencies to be included in 401(k) retirement plans. In a letter dated December 11, 2025, addressed to SEC Chairman Paul Atkins, Congress expressed support for President Trump's August 2025 executive order, which directs the Department of Labor and the SEC to revise restrictive regulations on 401(k) investment options.
The initiative aims to democratize investment access, providing ordinary American workers with choices comparable to those available to large institutional pension funds. According to White House data, total U.S. retirement assets stood at a staggering $43.4 trillion as of March 31, 2025, with 401(k) plans alone holding approximately $12.5 trillion. Lawmakers argue that allowing measured allocations into digital assets could improve risk-adjusted returns and modernize retirement investment strategies.
Industry experts view this potential policy shift as a pivotal moment for Bitcoin's integration into traditional finance. Analysts project that even minimal allocations of 1–3% from the massive retirement fund pool could generate tens of billions of dollars in new buying pressure for Bitcoin. This influx of capital is seen as a potential catalyst to drive BTC to record highs, with some predictions targeting the $250,000 mark. The move is further supported by existing infrastructure, such as ForUsAll's partnership with Coinbase Institutional, which already allows employees to allocate a portion of their 401(k) to crypto.
The news emerges as Bitcoin's price shows technical signs of a mid-cycle correction, having retreated from the $100,000–$108,000 resistance zone to hover around $90,000. Market observers suggest that a successful regulatory change could provide the fundamental impetus needed to reignite the bull run.
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