Bitcoin crash raises doubts over adding crypto to 401(k)s
Bitcoin’s 50% plunge from its October peak erased $2 trillion in market value and has reignited debate over whether volatile digital assets belong in a $12.5 trillion 401(k) market built for stability. An August executive order from U.S. President Donald Trump opened defined‑contribution plans to alternative assets, including digital assets, and SEC chair Paul Atkins said “the time is right” to open the retirement market to crypto just before the selloff.
Lee Reiners warned, “If investors want to speculate on crypto, they are welcome to do so on their own. 401ks exist to help people save for a secure retirement, not gamble on speculative assets with no intrinsic value,” and added that plan sponsors are unlikely to include crypto because they “don't want to be sued by their employees.” Some firms were caught by the sudden rout.
United States