TLDR
- Bitcoin had a 65% price swing in 2025, while Nvidia saw a 120% fluctuation.
- Senator Warren asked the SEC for crypto risk answers by January 27.
- The Department of Labor now holds a neutral stance on crypto in 401(k)s.
- Hougan said Bitcoin is “just another asset” with less volatility than stocks.
Bitwise Chief Investment Officer Matt Hougan called opposition to Bitcoin in 401(k) retirement plans “ridiculous,” pointing to lower volatility in Bitcoin compared to some popular stocks. His comments come as Senator Elizabeth Warren sent a letter to the SEC demanding action on crypto risks in retirement accounts.
Bitwise Defends Bitcoin’s Place in Retirement Accounts
Bitwise CIO Matt Hougan criticized asset managers and regulators who oppose including Bitcoin in 401(k) plans. He described their stance as “ridiculous” during an interview with Investopedia Express Live. Hougan argued that Bitcoin’s price swings are not unlike those seen in traditional stocks.
He compared Bitcoin’s 2025 volatility with that of Nvidia. Nvidia stock moved between $94.31 and over $207, while Bitcoin shifted from $76,000 to $126,080. That’s a 120% move for Nvidia and a 65% move for Bitcoin. Hougan asked why Bitcoin faces restrictions while other volatile stocks like Nvidia are available in retirement accounts.
He added, “This is just another asset. Does it go up and down? Absolutely. Is there risk in it? Absolutely.” Hougan emphasized that institutional hesitation does not reflect market behavior fairly.
Senator Warren Questions Crypto in 401(k)s
Senator Elizabeth Warren sent a letter to the SEC on Monday asking how the agency plans to manage the risks of crypto in retirement funds. She expressed concerns about high fees and market volatility, calling crypto unsuitable for average retirement investors.
In her letter, Warren stated, “For most Americans, their 401(k) represents a lifeline to retirement security rather than a playground for financial risk.” She also raised questions about market manipulation and called on SEC Chair Paul Atkins to respond by January 27.
Warren asked the SEC to clarify how it values volatile crypto assets held by public companies. She also wants to know if the SEC will publish educational resources to guide retail investors.
Shifting Regulatory Landscape
In August 2025, President Donald Trump signed an executive order instructing the Department of Labor to review restrictions on alternative assets in defined-contribution plans. This move opened the door for cryptocurrency to be considered in 401(k) plans.
Following that, the Department of Labor’s Employee Benefits Security Administration rescinded a 2022 compliance release that discouraged crypto. The agency now holds a neutral stance, saying it does not endorse or oppose crypto in retirement plans.
This change gives retirement plan providers more flexibility but also raises questions about regulation and oversight. The SEC’s response to Warren’s letter may influence how quickly providers act on the new flexibility.
Crypto in 401(k)s May Become Common
While many institutions remain cautious, Hougan believes crypto will eventually become a regular option in retirement plans. He said, “These are very slow-moving institutions, but we’re moving in that direction.”
Though no specific timeline has been confirmed, Hougan said market trends and changing regulatory positions suggest eventual acceptance. Crypto firms view 401(k) access as key to expanding adoption among everyday investors.
As regulatory discussions continue, the inclusion of crypto in retirement accounts remains a major topic for financial policy and investor protection.
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