Washington’s latest retirement push could send fresh 401(k) money toward Bitcoin sooner than expected.
House Republicans on Tuesday introduced the Retirement Investment Choice Act, a bill that would turn President Donald Trump’s August executive order into law.
The proposal formally opens the door for retirement plans to include “alternative assets,” such as funds investing in digital currencies.
The move comes as regulators advance guidance on the issue, with Bitcoin trading near $113,000 in a volatile market.
If passed, the legislation would give Executive Order 14330 the full force of law. It directs the Labor Department and Securities and Exchange Commission to make room for a wider range of investment choices in defined-contribution plans like 401(k)s.
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While the order doesn’t require plans to offer crypto, it specifically mentions “actively managed investment vehicles that invest in digital assets.”
It also sets a 180-day deadline for the Labor Secretary to clarify fiduciary duties, potentially including safe-harbor protections for employers who choose to offer such options.
In May, the Labor Department rescinded its 2022 guidance that had urged plan sponsors to exercise “extreme care” with crypto-related products.
The rollback marked a shift to a neutral stance, neither endorsing nor discouraging digital asset exposure in retirement portfolios.
In September, the Labor Department said it plans to propose new rules clarifying when asset-allocation funds that include alternatives can be offered. The agency also hinted at potential safe harbors for fiduciaries handling such products.
“This Advisory Opinion provides much-needed clarity and certainty as the department works toward issuing proposed regulations,” Deputy Secretary Keith Sonderling said at the time.
Bitcoin is trading around $112,985, with intraday moves between roughly $110,099 and $115,916.
According to SoSoValue data, US spot Bitcoin ETFs saw about $326.5 million in net outflows on Tuesday, as global markets weakened amid renewed US-China trade tensions.
The new executive order directs regulators to coordinate on how alternative assets can fit into default options and managed retirement portfolios.
This matters because most savers rely on target-date or professionally managed funds.
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Industry momentum is growing fast. Empower backed the order in August, saying they plan to expand access to private investments and cryptocurrency alongside lifetime-income options.
Major asset managers, including BlackRock and KKR, are now developing retirement-friendly products.
Private-market firms are looking at how to make their offerings fit the daily-priced structure of defined-contribution plans.
Supporters in Congress say this flexibility could help diversify portfolios without weakening ERISA protections. A House Financial Services Committee letter last month praised the order and urged the Labor Department to create a formal “safe harbor” through rulemaking.
Not everyone agrees. Critics warn that adding alternatives, especially crypto, could raise fees, limit liquidity, and bring more volatility to 401(k) plans.
Meanwhile, veteran trader Peter Brandt has shared how he’s positioning himself for retirement.
In a recent post on X, he said he plans to keep 5% of his Bitcoin holdings in his retirement portfolio.
I believe my best bet is to:
1. Convert my own trading from daily charts to weekly charts for as long as I can do so
2. Quality dividend stocks
3. Emerging mkts
4. Gold and Silver
5. 5% BTC https://t.co/zPbHuVdwnH— Peter Brandt (@PeterLBrandt) October 13, 2025
The comment came as a follow-up to a question he’d earlier posed to his followers about investment strategies later in life.
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Brandt’s approach goes beyond Bitcoin. He’s focusing on steady income and lower risk. Brandt is also choosing dividend-paying stocks for steady income. He is also adding emerging-market exposure for growth and investing in precious metals like gold and silver as a hedge against inflation.
He also said he’s cutting back his trading activity. He’s moving from daily to weekly trades to slow his pace as he nears retirement.
This strategy marks a move toward stability and reliable returns.
Yet, keeping 5% of his portfolio in Bitcoin, he shows he still believes in the asset’s long-term strength. This is true even after the market’s recent slump.
To Brandt, Bitcoin remains a hedge against inflation, his version of digital gold.
His approach reflects a simple message: as retirement nears, balance and steady income matter more than hype.
Brandt also explained why real estate didn’t cut, saying property prices are inflated and could see a major correction soon.
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