The U.S. Department of Labor retirement plans include cryptocurrencies! Three top Democrats join forces to call for a halt: Don’t risk your retirement savings.

U.S. House and Senate Committee Senior Members Co-Sign Letter to Labor Department Demanding Withdrawal of Proposed Rules Allowing 401(k) Retirement Funds to Invest in Cryptocurrencies and Private Equity Dividends, Citing $10.1 Trillion in Retirement Savings at Risk
(Background: Trump rumored to open $9 trillion 401(k) retirement investments in cryptocurrencies—Bitcoin to the moon?)
(Additional context: U.S. pushes for Bitcoin investments in 401(k) plans! Labor Department releases "Alternative Asset Safe Harbor" proposal)

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• Three Democratic Leaders Co-Sign to Halt
• $10.1 Trillion Retirement Fund Pool
• Potential Conflicts of Interest from Profiting
• Retirement Investment Status in Asia

Senior members of three committees in the U.S. House and Senate jointly sent a letter to the Department of Labor on Tuesday, demanding the withdrawal of the proposed rules that would allow 401(k) retirement plans to invest in cryptocurrencies. Senators Sanders, Warren, and Scott pointed out that retirement accounts face “volatile assets” and “lack regulation and safeguards.”

Three Democratic Leaders Co-Sign to Halt

Senior members of the Senate Banking Committee, Bernie Sanders; the Senate Committee on Health, Education, Labor, and Pensions, Elizabeth Warren; and the House Committee on Education and Labor, Bobby Scott, issued a joint letter to Acting Labor Secretary Keith Sonderling on Tuesday.

They requested the Department of Labor to withdraw the proposal from March, which would permit private equity, digital assets, private loans, and other “alternative assets” into 401(k) retirement plans.

The letter states: “The application of securities law to crypto assets is rapidly evolving, and many legal protections for investors holding government bonds may not apply to cryptocurrencies. The lack of sufficient regulation could harm investor interests.”

$10.1 Trillion Retirement Fund Pool

According to data from the Investment Company Institute (ICI), as of the end of December last year, Americans held approximately $10.1 trillion in 401(k) retirement funds. This massive pool is primarily invested in mutual funds, index funds, and stocks, with crypto assets not yet mainstream.

This policy stems from an executive order issued by President Trump in August 2025, which called for “democratizing access to alternative assets,” including cryptocurrencies. The Department of Labor subsequently formally proposed the rules in March.

Potential Conflicts of Interest from Profiting

The three legislators also pointed out that the Department of Labor’s policy could enable government officials to benefit financially. The Trump family established a cryptocurrency investment firm, World Liberty Financial, prompting Sanders to joke that “this field is full of conflicts of interest.”

They also proposed similar amendments in the upcoming digital asset market structure bill, the “CLARITY Act,” requiring ethical provisions to be included.

Retirement Investment Status in Asia

In contrast, Taiwan’s labor retirement fund is mainly allocated to U.S. stocks, Taiwanese stocks, and bonds, with cryptocurrencies not yet officially included as an investment option. According to the Directorate-General of Budget, Accounting, and Statistics, Taiwan’s labor retirement fund exceeded NT$2.8 trillion by the end of 2025. Incorporating crypto assets into the portfolio following the U.S. lead could bring greater diversification to the retirement system but also introduce volatility risks.

Notably, a survey in South Korea shows that 27% of people under 50 already hold cryptocurrencies, with 70% planning to increase their holdings, indicating that acceptance of crypto assets among Asian retirement populations is rapidly rising.