US Lawmakers Oppose Inclusion of Crypto in Pension Funds

Leading Democrats in the US Senate and House of Representatives have demanded that the Department of Labor halt plans to include digital and "alternative assets" in Americans' 401(k) retirement plans. Senators Bernie Sanders, Elizabeth Warren, and Representative Bobby Scott sent a letter to Acting Secretary Keith Sonderling, urging the withdrawal of the proposal to add private equity, crypto, and private credit to retirement accounts. Cointelegraph.com reported .

Lawmakers argue that this policy exposes pension funds to the risks of highly volatile assets such as Bitcoin and other digital currencies. The letter notes a lack of regulation and protective mechanisms in the crypto market, which could make many cryptocurrencies vulnerable to fraud. Concerns were also raised about weakened oversight at financial agencies such as the SEC.

This Department of Labor initiative was announced following an executive order signed by US President Donald Trump in August 2025 aimed at "democratizing" access to alternative assets. According to the Investment Company Institute, as of the end of 2024, approximately USD 10.1 trillion was held in Americans' 401(k) plans.

Sanders, Warren, and Scott questioned whether this policy creates conflicts of financial interest for current administration officials. Specifically, they highlighted the Trump family's crypto project, World Liberty Financial. Democrats stated they would vote against any legislation that does not include ethics rules.