Bitcoin Faces Scrutiny in Retirement Account
Bitcoin in 401(k)s is facing scrutiny as U.S. Senator Elizabeth Warren questions the SEC about risks. However, Bitwise Chief Investment Officer Matt Hougan argues that crypto’s volatility is comparable—or even lower—than major stocks like Nvidia, pushing for broader adoption in retirement accounts.
Bitwise Executive Defends Bitcoin for Retirement Plans
Matt Hougan, Chief Investment Officer at Bitwise, pushed back against critics who claim Bitcoin in 401(k)s is too volatile for retirement accounts. Hougan compared Bitcoin’s swings to those of traditional stocks, highlighting that some equities experience even larger price fluctuations.
Speaking to Investopedia Express Live, Hougan called restrictions against including Bitcoin in retirement plans “ridiculous.”
“This is just another asset. Does it go up and down? Absolutely. Is there risk? Absolutely. But over the last year, Bitcoin has been less volatile than Nvidia stock, and yet no one bans Nvidia from 401(k)s,” Hougan said.
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Bitcoin vs. Traditional Stocks: A Volatility Comparison
Bitcoin’s price between April and October 2025 ranged from $76,000 to $126,080, a swing of roughly 65%. By contrast, Nvidia shares moved from $94.31 to over $207 in the same period, representing a 120% swing.
Hougan’s comparison underscores his argument that volatility alone shouldn’t exclude Bitcoin from retirement plans, and that its inclusion could normalize crypto as a mainstream asset for retail investors.
Senator Warren Presses SEC on Crypto Risks
On the same day, U.S. Senator Elizabeth Warren sent an open letter to SEC Chair Paul Atkins, urging the regulator to clarify how it plans to manage risks if crypto is included in retirement plans.
Warren highlighted concerns about:
- High fees and expenses associated with crypto investments.
- Volatility risks that could jeopardize retirement savings.
- Market manipulation in crypto trading.
“For most Americans, their 401(k) represents a lifeline to retirement security rather than a playground for financial risk. Allowing crypto in retirement accounts creates fertile ground for workers and families to lose big,” Warren wrote.
She requested that the SEC release research, guidance, and educational materials to protect investors.
Regulatory Shifts Pave the Way for Crypto in Retirement Accounts
The debate comes after President Donald Trump’s 2025 executive order, which directed the Department of Labor to reevaluate restrictions on alternative assets in 401(k) plans. This move opened the door for cryptocurrencies to potentially be included in retirement savings.
Earlier in 2025, the Employee Benefits Security Administration (EBSA) took a “neutral stance” on crypto in 401(k)s, signaling a shift from prior discouraging guidance issued in 2022.
Hougan predicts that, despite slow institutional adoption, 401(k) providers will eventually offer crypto exposure.
“These are very slow-moving institutions, but we’re moving in that direction. Eventually, Bitcoin and other crypto assets will be normalized like other investment options, which is how it should be,” he said.
Looking Ahead: Crypto Retirement Adoption
With regulatory clarity slowly emerging and debates intensifying in Congress, Bitcoin in 401(k)s is becoming a high-profile issue. If adoption occurs, it could mark a major milestone in bringing digital assets into mainstream finance, expanding access to crypto for everyday investors.
