“DIGITAL ASSETS THRILLS, BUT WARREN WARNS 401(K) SPILLS.”
Should worker retirement funds be exposed to digital assets volatility? Senator Elizabeth Warren’s concerns about putting Bitcoin and other digital assets in 401(k) retirement plans have put increasing pressure on the US Securities and Exchange Commission (SEC).
Warren cautioned that digital currencies could put American workers at significant financial risk in a public letter to SEC Chair Paul Atkins.
According to her, the majority of Americans rely on their 401(k) accounts as their primary source of retirement savings, therefore they shouldn’t be exposed to excessive market volatility.
The price history of Bitcoin continues to be a major concern. Bitcoin saw a swing of over 65% in just six months in 2025, starting at $76,000 in April and rising to around $126,000 by October.
According to Warren, the digital asset is inappropriate for long-term retirement planning, which usually favours steady and predictable returns, because of these abrupt fluctuations.
In addition, Warren expressed worries about increased costs, market manipulation, and a lack of investor education in cryptocurrency markets.
She questioned whether the SEC has investigated manipulative trading techniques that might risk retirement investors and whether the agency is appropriately taking volatility into account when monitoring the valuation of digital assets.
The discussion comes after US President Donald Trump signed an executive order in 2025 instructing the Department of Labour to examine limitations on alternative assets in defined-contribution plans.
The Labour Department took a neutral position on digital assets in 401(k)s in May, neither supporting nor opposing their use.
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