SEC Chair Signals Openness To Including Crypto Investments In Retirement Plan — Details
United States Securities and Exchange Commission (SEC) Chairman Paul Atkins has indicated openness to allow crypto investments in retirement plans. This comes days after a report emerged about United States President Donald Trump’s plans to open the retirement market to other alternative investments, including digital assets, gold, and private equity.
This report revealed that the initiative is expected to become a reality through a Presidential executive order as early as this week. This move would allow the diversification of investment options available within US retirement 401(k) plans, which have been primarily limited to stocks and bonds over the years.
Disclosure Still Important For Crypto Inclusion In 401(k) Plans
A 401(k) plan is a workplace savings plan that allows an individual to contribute a portion of their wages to individual accounts where it can be invested and withdrawn at a future date — typically after retirement.
In a Bloomberg interview on Friday, July 18, Atkins signaled openness to allowing cryptocurrencies into 401(k) plans for retired Americans. However, the Commission’s leader highlighted the need for responsible disclosure and education on risks associated with investing in digital assets.
Atkins said about the move:
We have to do it carefully, because the private markets are a lot different from the public markets. Disclosure is key, and people need to know what they are getting into. However, we need to address it because there is a demand out there for this sort of products.
If Trump does sign an executive order allowing crypto investments in American retirement plans, it would represent another one in the host of pro-crypto actions taken by the US president since taking the Oval Office in January. On Friday, Trump signed the landmark crypto bill “GENIUS” into law.
This GENIUS act represents a stride in the right direction for clearer regulations for the crypto industry, as the legislation is aimed at establishing a regulatory framework for stablecoins.
SEC Exploring Innovation Exception To Boost Tokenization
In the interview, Atkins also mentioned that the SEC is considering setting up an innovation exemption within its regulatory framework to foster tokenization.
As Bitcoinist earlier reported, this change would allow new trading techniques and support the development of a tokenized securities ecosystem.
Atkins is becoming increasingly popular amongst the crypto crowd due to his pro-crypto stance, which is the stark opposite of his predecessor, Gary Gensler.
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