U.S. Lawmakers Push to Let Crypto Into 401(k) Plans as Bitcoin Eyes $250,000 Milestone

Washington just opened a new front in the crypto revolution—and it could reshape retirement portfolios across America.

The 401(k) Frontier

Forget the sidelines. A bipartisan push in Congress aims to tear down the last major barrier between everyday investors and digital assets: the retirement account. The proposal would clear a path for crypto to sit alongside traditional stocks and bonds in 401(k) plans, transforming it from speculative gamble to mainstream retirement holding. It’s a regulatory green light that could funnel billions in dormant capital directly into the crypto ecosystem.

The $250,000 Signal

While lawmakers debate, the market’s already placing its bets. Analysts are circling a bold price target for Bitcoin—$250,000. That figure isn’t just a number; it’s a statement of institutional faith, a prediction built on the scaffolding of potential ETF inflows, halving-cycle math, and now, the prospect of retirement fund adoption. It suggests a future where Bitcoin isn’t just digital gold, but a foundational asset class.

Friction Meets Future

The move faces fierce headwinds. Traditional finance gatekeepers warn of volatility and custody nightmares. Yet, proponents argue the greater risk is irrelevance—locking a generation out of the defining technological shift in finance. It’s a classic clash: the prudent, slow-moving world of retirement savings versus the disruptive, exponential logic of crypto.

One cynical take? Wall Street might finally warm up to crypto once it can charge its usual 2% management fee on it. The push cuts through regulatory red tape, bypasses legacy objections, and redefines what a ‘prudent’ investment can be. If it succeeds, the line between retirement savings and digital asset speculation won’t just blur—it will vanish.

U.S. lawmakers have urged the SEC’s Paul Atkins to implement a new executive order that could let Americans invest in Bitcoin and other digital assets inside 401(k) retirement plans. 

If approved, this move may unlock trillions in long-term retirement capital for the crypto market, which could push the Bitcoin price toward $250K.

Lawmakers Ask SEC to Open the $12.5 Trillion 401(k) Market to Crypto

On December 11, U.S. lawmakers sent a formal letter to the SEC Chairman Paul Atkins, showing support for President Trump’s executive order that aims to allow alternative assets like bitcoin in retirement plans.

The order, signed in August 2025, directs the Department of Labor and the SEC to update rules that currently limit what 401(k) plans can offer.

The goal of this letter is to give everyday workers the same investment choices that large pension funds enjoy. U.S. 401(k) plans hold around $12.5 trillion, and even a small opening for Bitcoin or other crypto assets could bring billions of dollars into the market.

Meanwhile, Lawmakers asked the SEC to speed up these changes so people can invest in more than just stocks and bonds.

Institutional Adoption May Arrive Faster Than Expected

Industry experts believe this policy shift could be a major turning point for crypto in traditional finance. Coinbase’s CEO recently said that Bitcoin and other cryptocurrencies will eventually become a normal part of “everyone’s 401(k).”

Some companies are already preparing for this change. For example, ForUsAll has partnered with Coinbase Institutional to let employees put up to about 5% of their 401(k) savings into crypto.

This shows that the system is already in place and could expand quickly if national rules are updated.

Small 401(k) Allocations Could Push Bitcoin Toward $250,000

The shift complements other industry developments. U.S. spot Bitcoin ETFs from major firms like BlackRock and Fidelity now hold tens of billions of dollars and are widely available in IRAs and brokerage accounts. 

Investors and retirement savers alike are already using these products to gain Bitcoin exposure.

If 401(k) plans also start adding Bitcoin, even a small amount like 1–3%, it could bring tens of billions in new buying. 

Crypto analyst predict that such steady demand can push BTC price toward $250,000.