Congressional Democrats are fighting a Trump administration proposal that would allow 401(k) retirement plans to invest in cryptocurrency, private credit, and private equity. The Labor Department rule would expose $14.2 trillion in worker retirement savings to volatile assets that critics say belong nowhere near retirement accounts.
Senators Bernie Sanders and Elizabeth Warren, along with House Education and Workforce Committee ranking member Bobby Scott, sent a letter arguing the rule strips away investor protections and encourages risky investments. They point to Trump’s own memecoin as evidence of crypto’s extreme volatility.
$75 to $2
Trump’s memecoin soared to over $75 per token during his January 2025 inauguration but has since dropped to $2 per token.
The stakes are particularly high for American seniors, who already face financial hardship at rates far exceeding other developed nations. More than 22.8% of US seniors live in poverty, compared to just 5.1% in Denmark, 5.8% in France, and 12.6% in Germany, according to the Organisation for Economic Cooperation and Development.
The FBI reported that cryptocurrency fraud complaints resulted in over $11 billion in losses for Americans in 2025, making crypto some of the costliest cyber-enabled fraud. The Financial Industry Regulatory Authority warns that crypto investments “have experienced higher levels of volatility relative to more traditional investment assets” and carry significant risk of total loss.
Consumer advocates see the proposal as a bailout for the struggling crypto industry disguised as retirement policy. Oscar Valdés Viera from Americans for Financial Reform said opening 401(k)s to these products “risks turning workers’ retirement savings into a Ponzi-like scheme that throws a lifeline to an industry scrambling for fresh cash.”
The rule could also expose workers to higher fees that erode long-term returns, adding another burden to Americans already struggling to save for retirement.
What you can do now
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Call your senators and ask them to oppose the Labor Department’s crypto 401(k) rule. Tell them retirement savings should remain in stable, regulated investments, not speculative assets.
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Contact your House representative on the Education and Workforce Committee if they serve on it. Ask them to support Bobby Scott’s opposition to the rule and protect worker retirement security.
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Submit a public comment to the Department of Labor opposing the rule. The comment period allows citizens to formally object to policies that threaten retirement security.
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Contact your state’s pension administrators if you’re a public employee. Ask them to publicly oppose any expansion of risky investments in state retirement systems.
Primary Sources
The Guardian: Democrats Oppose Trump Officials’ Effort to Include Crypto in 401(k) Plans Organisation for Economic Cooperation and Development: Senior Poverty Statistics Financial Industry Regulatory Authority: Cryptocurrency Investment Risks Americans for Financial Reform: Statement on 401(k) Crypto Rule