GOP Lawmakers Back Trump’s Move to Allow Crypto in 401(k) Plans

A group of key Republican lawmakers in the house of Representatives signaled support for the Trump governance’s move to allow choice assets, including cryptocurrencies, in 401(k) plans.

House Financial Services committee Chairman French hill, R-Ark., and Subcommittee on Capital Markets Chair Ann Wagner, R-Mo., were joined by seven other GOP lawmakers when they wrote to Securities and Exchange Commission (SEC) Chairman Paul Atkins on Monday to express support for the move.

they said President Donald Trump’s executive order on the subject has the potential to enhance Americans’ retirement savings and encouraged the SEC to work with the Labor Department in revising relevant regulations to make the investments more accessible.

“We applaud the EO’s policy ‘that every American preparing for retirement should have access to funds that include investments in alternative assets when the relevant plan fiduciary determines that such access provides an appropriate opportunity… to enhance the net risk-adjusted returns,” the lawmakers wrote.

SEC CHAIR WANTS PRIVATE MARKET INVESTMENTS AVAILABLE FOR AMERICANS’ 401(K) PLANS

DOL Issues Advisory Opinion on Retirement Investment Strategies

The Department of Labor (DOL) continues to implement President Trump’s Executive Order aimed at expanding options for retirement investment strategies. A recent Advisory opinion provides further guidance to plan fiduciaries, offering increased versatility in designing retirement plans to better serve American workers. This builds upon previous actions taken by the DOL to clarify and implement the executive order.

Background: The Executive Order and Retirement Security

In August 2023, President Trump signed an Executive Order on Promoting Retirement Security for American Workers. This order directed the DOL to consider amendments to regulations and guidance to allow fiduciaries to offer a wider range of investment options, including those that align with diverse values and preferences. The core goal is to enhance retirement security by giving individuals more control over their retirement savings.

Details of the Advisory Opinion

The DOL’s Advisory Opinion, released on September 23, 2025, clarifies how plan fiduciaries can incorporate environmental, Social, and Governance (ESG) factors, and also other non-pecuniary factors, into their investment selection process. It emphasizes that fiduciaries can consider these factors provided that they are done prudently and in the best financial interests of plan participants. The opinion specifically addresses concerns that ESG investing might be seen as prioritizing social goals over financial returns,stating that such considerations are permissible if they demonstrably benefit plan participants financially.

Key Provisions of the Opinion

• Flexibility for Fiduciaries: The opinion reinforces that fiduciaries have discretion in selecting investments, including those that incorporate ESG or other values-based criteria.
• prudence and Financial Interest: It stresses that all investment decisions must be made with prudence and a focus on maximizing financial returns for participants.
• Documentation Requirements: Fiduciaries are advised to thoroughly document their decision-making process,demonstrating how any non-pecuniary factors considered align with the financial interests of the plan.

Statements from the Department of Labor

“The Department of Labor is continuing to take swift steps to implement President Trump’s Executive Order,” said Labor Secretary Lori Chavez-DeRemer. “Today’s Advisory Opinion is another step forward towards our goal of giving plan fiduciaries the flexibility to design retirement investment strategies that meet the needs of American workers.”

Impact and Future Outlook

This Advisory Opinion is expected to encourage greater innovation in retirement plan design and investment options. It may lead to the increased availability of plans that cater to specific investor preferences, such as those focused on sustainable investing or companies with strong social responsibility records. The DOL is likely to continue refining its guidance on this topic, perhaps through further rulemaking or additional advisory opinions.

Key Takeaways

• The DOL is actively implementing President Trump’s Executive Order on retirement security.
• The recent Advisory Opinion provides clarity on incorporating ESG and other factors into retirement investment strategies.
• Fiduciaries retain discretion but must prioritize the financial interests of plan participants.
• This move aims to expand investment options and enhance retirement security for American workers.

The Department of Labor’s ongoing efforts to clarify and implement the Executive Order signal a commitment to modernizing retirement plan regulations and empowering individuals to save for a secure future. further developments are anticipated as the DOL continues to assess and respond to the evolving landscape of retirement investing.