Bitwise Chief Investment Officer Matt Hougan recently publicly refuted the claim that “Bitcoin is not suitable for 401(k) retirement plans,” calling this view “absurd.” He believes that excluding Bitcoin from retirement investments solely based on volatility is logically unfounded, especially when compared to the performance of some tech stocks, making such skepticism even less tenable.
Overall, this statement comes at a time when U.S. Senator Elizabeth Warren is pressuring the Securities and Exchange Commission (SEC). She has asked the regulator to clarify how it plans to mitigate risks associated with allowing digital assets into 401(k) plans. The divergence in positions between the two sides has once again brought the topic of “Bitcoin 401(k) retirement investments” into the spotlight.
In an interview with Investopedia Express Live, Matt Hougan pointed out that Bitcoin is fundamentally an asset, and its price fluctuations are not unusual. He emphasized that over the past year, Bitcoin’s price volatility was actually lower than Nvidia’s stock, yet the market has never called for banning Nvidia from 401(k) investment options. Data shows that Nvidia’s stock once surged over 120% in 2025, while Bitcoin’s increase was about 65% during the same period.
From a policy perspective, changes have already begun. Former U.S. President Donald Trump previously signed an executive order requiring the Department of Labor to reassess restrictions on alternative assets within defined contribution retirement plans, opening up policy space for cryptocurrencies to enter 401(k) plans. Overall, this move is seen as an important step in the institutionalization of the U.S. cryptocurrency system.
However, Elizabeth Warren remains cautious. In a public letter, she pointed out that digital assets often come with higher fees, potential market manipulation risks, and significant volatility, which may not be conducive to the long-term retirement savings security of ordinary workers. She has asked SEC Chairman Paul Atkins to provide clear responses regarding the relevant evaluation standards.
It is worth noting that the Employee Benefits Security Administration (EBSA) of the U.S. Department of Labor shifted to a “neutral stance” in 2025, rescinding previous guidelines that discouraged the inclusion of cryptocurrencies in 401(k) plans. Matt Hougan expects that, although progress will be slow, by 2026 and beyond, cryptocurrencies like Bitcoin will gradually become a standard option alongside traditional assets in 401(k) plans.
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