Bill Seeks to Codify Trump’s Crypto 401(k) Order Into Law

Freshman Congressman Troy Downing (R-MT) is introducing the Retirement Investment Choice Act on Tuesday, a one-page bill designed to grant President Trump’s August executive order on cryptocurrency and 401(k) plans “the force and effect of law.” The legislation would legally require 401(k) providers to consider offering exposure to alternative assets, including cryptocurrency investment vehicles, when they determine such access provides an appropriate opportunity to enhance retirement savings returns. This move represents a significant escalation from executive branch policy to potential federal mandate.

Downing, who has embraced cryptocurrency as a signature issue this year, praised President Trump’s leadership in what he called an effort to “democratize finance.” In a statement shared with Decrypt, the Montana representative declared that “alternative investments hold the transformative potential to supercharge the financial security of countless Americans saving for retirement” and expressed pride in “leading the effort in Congress to codify his EO and enshrine this move for generations to come.” The bill’s introduction comes as Republicans maintain their power trifecta in Washington, though similar legislative efforts have previously stalled.

The implications for America’s massive retirement savings industry are profound. Analysts estimate that opening the $25 trillion retirement savings market to cryptocurrency products could inject billions upon billions of dollars into the digital asset economy. Currently, Bitcoin and Ethereum ETFs represent the only directly crypto-exposed assets trading on Wall Street, but this landscape is poised for rapid expansion with numerous altcoin and meme coin exchange-traded products—including those exposed to Solana and Dogecoin—expected to soon gain SEC approval.

The transformation extends beyond traditional retirement vehicles. An increasing number of publicly traded companies have begun pegging their fortunes to cryptocurrency prices by investing in massive digital asset treasuries. While such crypto-affiliated stocks have surged in recent months, many have also crashed spectacularly, highlighting the volatility concerns that accompany greater crypto exposure in retirement portfolios. The legislation would essentially force 401(k) providers to weigh these risks against potential returns when making investment options available to retirement savers.

Despite Republican control in Washington, there is little guarantee that Downing’s bill will become law. A similar effort to codify an executive order signed by President Trump to establish a strategic Bitcoin reserve has languished in the House of Representatives since March, indicating potential challenges ahead for cryptocurrency legislation. The Retirement Investment Choice Act represents the latest front in an ongoing political battle over digital asset regulation and retirement security.

The legislation arrives amid growing institutional acceptance of cryptocurrency while simultaneously raising questions about appropriate risk levels for retirement savings. Trump’s original executive order insisted that Americans preparing for retirement should have access to alternative assets where providers determine such access provides appropriate enhancement opportunities. Downing’s bill would make this demand statutory rather than advisory, potentially creating new obligations for 401(k) providers while offering retirement savers unprecedented access to cryptocurrency markets through their retirement accounts.