Crypto News: U.S. Lawmaker Pushes to Turn Executive Order on Cryptocurrencies in Retirement Funds into Federal Law (Oct 16, 2025)

Why Is This Legislation Significant?

For years, the debate over whether cryptocurrencies belong in retirement accounts has raged on. Critics argue they’re too volatile, while proponents see them as a hedge against inflation and a way to diversify. Now, Rep. Alex Carter (R-TX) is pushing to make the inclusion of crypto in retirement funds a federal law, building on a 2024 executive order that first opened the door.

“This isn’t just about bitcoin or Ethereum—it’s about giving Americans more control over their financial futures,” Carter said in a recent interview. The proposed bill would require retirement plan providers to offer at least one crypto option, though with strict risk disclosures.

How Would This Affect Retirement Investors?

If passed, the law could mean:

• More options: 401(k) and IRA holders could allocate a portion of their funds to Bitcoin, Ethereum, or other approved cryptocurrencies.
• Increased scrutiny: The SEC would likely impose stricter rules on crypto custodians to prevent fraud.
• Market impact: Analysts at BTCC estimate that even a 1% allocation from retirement funds could inject billions into the crypto market.

What Are the Risks?

Cryptocurrencies are notoriously volatile. A 2023 study by CoinMarketCap showed that Bitcoin’s price swung by over 60% in a single year. While some see this as an opportunity, financial advisors caution against overexposure.

“Diversification is key,” says financial planner Maria Gonzalez. “I’d never recommend more than 5% of a retirement portfolio in crypto—unless you’re okay with potentially losing sleep.”

How Are Other Countries Handling This?

The U.S. isn’t alone in this debate. In 2024, Switzerland began allowing crypto allocations in pension funds, while Japan has taken a more conservative approach. Data from TradingView shows that countries with clearer regulations (like Singapore) have seen smoother adoption.

What’s Next for the Bill?

The legislation faces hurdles, including opposition from some Democrats who worry about consumer protections. But with bipartisan interest in crypto regulation growing, experts say some FORM of compromise is likely by mid-2026.