Bitwise Pushes Back on Bitcoin’s 401(k) ‘Allergy’ as Warren Presses SEC
The debate over including Bitcoin in U.S. 401(k) retirement plans is heating up, as Bitwise argues volatility concerns are overstated while regulators seek stricter safeguards.
▪ What happened
▪ Bitwise CIO Matt Hougan called resistance to Bitcoin in 401(k)s “ridiculous”
▪ Compared BTC volatility to stocks like Nvidia, which saw larger swings
▪ Comments follow renewed scrutiny from Sen. Elizabeth Warren
▪ Volatility comparison
▪ Nvidia: ~120% swing in 2025
▪ Bitcoin: ~65% swing in the same period
▪ No restrictions exist on volatile equities in retirement plans
▪ Policy backdrop
▪ Trump’s 2025 executive order asked Labor Dept. to review limits on alternative assets
▪ Opened the door for crypto inclusion in defined-contribution plans
▪ Labor Dept. later adopted a neutral stance, neither endorsing nor banning crypto
▪ Warren’s concerns
▪ Higher fees and expenses tied to crypto products
▪ Market volatility and manipulation risks
▪ Demands SEC clarity on valuation, safeguards, and investor education
▪ Why it matters
▪ Crypto in 401(k)s would mark major financial normalization
▪ Expands retail access through regulated channels
▪ Signals a shift from prohibition to risk-management
▪ Outlook
▪ Adoption likely slow due to institutional caution
▪ Industry expects eventual normalization alongside other asset classes
#Bitcoin #CryptoPolicy #ArifAlpha