Senator Elizabeth Warren (D-Mass.) demanded answers from SEC Chair Paul Atkins on how the agency will protect retirement savers after President Trump cleared the way for crypto in 401(k) plans, warning Trump’s family made $1.2 billion from crypto since taking office.
Warren Says Trump’s Crypto Push Creates Conflict Of Interest
Warren on Monday sent a letter to Atkins as the Senate Banking Committee negotiates crypto market structure legislation, warning the bill as currently drafted could weaken SEC authority and further expose 401(k)s to volatile crypto assets.
She said Trump’s sudden support for crypto appears driven by his own financial interests.
Since returning to office in January 2025, Trump and his family have made over $1.2 billion from crypto ventures including World Liberty Financial’s USD1 stablecoin and the WLFI (CRYPTO: WLFI) token.
The letter comes ahead of Thursday’s committee markup on the crypto bill.
She also warned that proposed legislation could create a “tokenization loophole” allowing financial products offered on blockchain to sidestep SEC authority to regulate securities.
Warren Wants Answers By January 27
Warren set a January 27 deadline for the SEC to explain how it will handle several critical issues.
She wants to know if the agency has ensured companies properly value crypto assets in public financial statements, whether it has investigated manipulation in crypto markets, and what educational resources exist for investors.
“For most Americans, their 401(k) represents a lifeline to retirement security rather than a playground for financial risk,” Warren wrote.
She said expanding crypto in retirement plans exposes workers to higher fees, less transparency, and bigger losses when markets crash while reducing the SEC’s power to monitor these investments.
Trump Executive Order Opened Door For Crypto In Retirement Plans
Trump signed an executive order in August 2025 telling the Labor Department to reconsider rules that limited alternative assets in 401(k) plans, opening the door for crypto to enter retirement accounts.
The Department of Labor announced in May it would take a “neutral stance” on crypto in 401(k)s, reversing a 2022 policy that discouraged the practice.
Warren previously called Trump’s $2 billion deal with the UAE involving the USD1 stablecoin “shady,” warning it could enable corruption.
Bitwise CIO Says Bitcoin Less Volatile Than Nvidia Stock
Bitwise Chief Investment Officer Matt Hougan pushed back Monday, calling restrictions on Bitcoin (CRYPTO: BTC) in 401(k)s “ridiculous.”
Hougan pointed out that Bitcoin was actually less volatile than some stocks last year.
Nvidia (NASDAQ:NVDA) shares swung 120% between an April low of $94.31 and October high of $207. Bitcoin moved 65% between $76,000 in April and $126,080 in October.
“This is just another asset. Does it go up and down? Absolutely. Is there risk in it? Absolutely. But it’s actually less volatile over the last year than Nvidia stock,” Hougan said.
Why This Matters For Crypto Markets
Getting crypto into 401(k)s has been a major goal for the industry because it brings crypto to mainstream investors and makes it legitimate within the traditional financial system.
But Warren’s letter shows Democrats will fight the move, arguing Trump is using his political power to pump his own crypto investments.
Labor unions AFL and AFT have already opposed the draft crypto legislation. The battle lines are drawn for Thursday’s committee vote.
Image: Shutterstock
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