Senator Elizabeth Warren has taken a publicly combative stance against the recent U.S. policy change that opens the door for cryptocurrencies to be offered inside 401(k) retirement plans and similar defined‑contribution accounts.
She claims that the order allowing crypto into American retirement accounts creates “fertile ground for workers and families to lose big. I’m pushing for answers, she said.
Too speculative for 401(k) plans?
Historically, agencies like the Department of Labor cautioned 401(k) plan sponsors against embracing crypto. The nascent asset class was deemed to be too risky due to high volatility and other factors.
In 2025, that caution was swiftly abandoned when federal guidance warning against crypto in retirement accounts was rescinded.
In her recent letter to the Securities and Exchange Commission (SEC), arguesthat a 401(k) is likely not a place for speculative assets for the vast majority of workers and families.
According to Warren, allowing crypto into those accounts could mean greater exposure to sudden price swings and opaque markets.
Cryptocurrencies lack the historical performance data, standardized valuation methods, and transparent regulatory oversight, which is supposed to make them riskier than traditional securities.
Other lawmakers and advocacy groups have echoed similar concerns. Opening retirement accounts to speculative assets without risks eroding safeguards that have built up over decades.
At the same time, some proponents argue that crypto could actually modernize savings options and offer diversification benefits.