A group of lawmakers is urging the SEC to allow digital assets in 401k plans, opening a regulated pathway for cryptocurrencies like XRP.
A bipartisan group of US lawmakers has sent a formal letter to the Securities and Exchange Commission (SEC) requesting the implementation of the executive order 14330 Signed by President Donald Trump in August 2025, this directive proposes opening the $12,5 trillion 401k retirement market to regulated digital assets.
The initiative seeks to allow contribution-defined retirement plans to include cryptocurrency allocations, provided they meet strict liquidity, regulatory, and settlement mechanism criteria.
The letter, signed by members of House Financial Services CommitteeThe statement supports the intention to democratize access to alternative investments for American workers. It also urges the SEC to review the definitions of “accredited investor” and “qualified purchaser” to broaden participation in these digital assets. In parallel, it mentions pending legislation in Congress that could facilitate access to digital investments for millions of citizens.
Crypto enters the 401(k): the order that redefines retirement for Americans
The executive order cited in the lawmakers' letter states that the Department of Labor and the SEC must coordinate to update the fiduciary guidelines governing 401(k) plans. This includes evaluating which alternative assets may be considered suitable for participants under the ERISA Act.
Although some private assets had already been allowed in retirement plans since 2020, the adoption of cryptocurrencies has been limited by concerns about costs, transparency, and legal risks.
However, the current proposal from the bipartisan group represents a structural change. If approved, it would allow fund managers include cryptocurrencies in retirement portfoliosprovided they meet stringent regulatory standards. Therefore, since these are not speculative products or exchange-traded funds (ETFs), but rather direct allocations to assets with robust institutional infrastructure, it is expected that only a few cryptocurrencies will meet the necessary requirements to be considered eligible.
XRP is poised to attract billions of 401k investors, according to experts.
According to cryptocurrency analyst Pumpius, XRP could be one of the main beneficiaries if this initiative moves forward. In a recent post on X, the commentator described the moment as “absolutely critical for the future of XRP,” highlighting that this digital asset meets the three required pillars: regulation, liquidity and settlement.
XRP offers active institutional products, such as custody through Ripple Prime, and dollar settlement mechanisms via the RLUSD stablecoin on the XRPL network. Furthermore, several international regulators have made progress in clarifying XRP's regulatory status, positioning it favorably compared to other digital assets. The existence of SEC-approved spot ETFs and the company's existing compliance infrastructure reinforce this cryptocurrency's potential for inclusion in retirement plans.
From Pumpius's perspective, this type of capital is "sticky, predictable, and long-term," representing a unique opportunity for assets designed for regulated environments. The possibility for employers and plan providers to allocate between 1% and 5% of 401(k) funds to regulated cryptocurrencies like XRP could generate an unprecedented structural influx into the digital ecosystem. Indian.
New opportunities for the expansion of the crypto ecosystem
Opening 401(k) plans to digital assets like XRP could boost the entire crypto sector by attracting long-term retirement capital. This inclusion would bring validation from financial institutions, increased regulatory scrutiny, and access for millions of American workers to innovative blockchain-based investment options. Traditional asset managers would begin developing more sophisticated products, accelerating the mass adoption of these technologies.
However, this growth process anticipated by experts will not be immediate. Even so, Trump's legislative proposal and executive order have generated attention in specialized media and among industry analysts, and could represent a significant transformation in how Americans build their retirement portfolios, integrating digital assets under security and compliance standards.
In short, experts believe that legislative pressure on the SEC to allow digital assets in 401(k) plans marks a turning point in the relationship between cryptocurrencies and regulated markets. XRP, due to its infrastructure and level of compliance, is emerging as one of the assets with the greatest potential for inclusion in this new scheme. If approved, the initiative would not only expand investment options for workers but also strengthen the legitimacy of the crypto ecosystem with financial institutions and regulators.
