TLDR
- SEC Chair Paul Atkins said Trump’s executive order will expand investment choices for 401(k) retirement savers.
- The order allows access to private equity and crypto assets for individual 401(k) participants.
- Atkins explained that the number of public companies has dropped while private markets have grown.
- He stated that pension funds and endowments have access to private markets while 401(k)s do not.
- Atkins emphasized the need for strong regulatory safeguards to protect retirement investors.
SEC Chair Paul Atkins confirmed that President Trump’s executive order on crypto 401(k) plans expands access and choice for retirement savers. The policy allows individual investors to tap into private equity and digital assets traditionally reserved for pensions and endowments. Atkins emphasized the order levels the retirement landscape and increases investment opportunities.
Crypto 401(k) Plans Open New Investment Avenues
Paul Atkins supported President Trump’s executive order, saying crypto 401(k) plans would broaden investment access for individual savers. He noted that public markets have shrunk, while private capital markets have grown, widening the gap in investment access. Atkins argued that 401(k) participants deserve the same flexibility enjoyed by pension funds.
He stated,
“The number of public companies is half of what it was, while private markets have expanded significantly.”
He explained that this shift disadvantages individual investors compared to institutional players. Hence, expanding crypto 401(k) offerings may reduce inequality in retirement investment options.
Atkins said this change helps individuals access both private equity and digital assets within regulated frameworks. He insisted on the need for strong regulations to accompany increased access. “Proper guardrails are essential so investors fully understand the risks involved,” he added.
Agencies Tasked with Crypto 401(k) Framework
The executive order assigns the Department of Labor and SEC to build a regulatory framework for crypto 401(k) access. Atkins stated that the agencies are focused on balancing investor protection with wider asset class inclusion. He reiterated that expanding access must not compromise retirement savers’ financial security.
The new rules will affect broker-dealers, investment advisors, and asset managers handling crypto 401(k) assets. Atkins emphasized that traditional regulations require updates to address crypto-specific features like custody and blockchain settlement. “The goal is to adapt 90-year-old rules to today’s technology,” he said.
He assured that the process will include broad coordination across all SEC divisions. The effort aims to integrate crypto 401(k) options without undermining retirement account safety. Clarity and legal certainty will underpin the entire regulatory approach.
Project Crypto Targets Rule Modernization
Project Crypto will guide the SEC’s effort to revise outdated securities rules for digital assets in crypto 401(k) accounts. Atkins announced that the agency has mobilized all departments to design rules that reflect today’s asset structures. The project’s main focus is modernizing custody rules for blockchain assets.
He noted that the prior environment for crypto assets lacked clarity and discouraged innovation. Atkins stated,
“There was too much guesswork and an unfriendly regulatory climate.”
With new policy backing, crypto 401(k) structures can now move toward formal acceptance.
