SEC Chair Advocates for Crypto in 401(k) Plans with Essential Safeguards

SEC Chair Endorses Crypto in 401(k) Plans

In a recent CNBC interview, SEC Chair Paul Atkins expressed backing for including cryptocurrency investments in 401(k) retirement plans, emphasizing the need for robust protective measures. Speaking with CFTC Chair Mike Selig, Atkins addressed concerns from Senator Elizabeth Warren about potential risks to workers and families from such investments.

Managed Exposure with Safeguards

Atkins pointed out that many Americans already encounter indirect crypto exposure through managed pension funds. He advocates for a careful approach to allow 401(k) plans to offer similar access, ensuring professional management and protective measures for retirees.

“We need to approach 401(k)s with caution, focusing on private securities and equity funds where people already have exposure through pension funds,” Atkins stated.

“We're aiming to enable access to these through 401(k)s, with professional fund management and trustee oversight. The timing is right to advance cautiously with safeguards for retirees,” he added.

Ongoing Regulatory Efforts

Atkins also highlighted the SEC's technical assistance to congressional committees on crypto regulation. He described historical SEC and CFTC coordination as challenging but noted a shift towards collaboration.

“Previously, regulatory efforts were like 'two different fortresses,' but now we aim to collaborate and facilitate innovation for investors,” Atkins mentioned.

Selig expressed optimism about legislation granting the CFTC authority over digital asset spot markets. He emphasized that clear laws and unified regulation could position the US as a leader in crypto market standards, fostering innovation and supporting new financial products.