Bitwise CIO Argues for Bitcoin in 401(k)s, as Senator Warren Questions SEC

Bitwise chief investment officer Matt Hougan has slammed the idea that Bitcoin shouldn’t be used for investment and 401(k)s because of its volatility — arguing that some stocks are also prone to even larger price swings.

Hougan made the comments on the same day US Senator Elizabeth Warren pressed the US Securities and Exchange Commission (SEC) for answers on how it would mitigate risks involved in allowing crypto in retirement funds. 

In August last year, US President Donald Trump to reevaluate restrictions around alternative assets in defined-contribution plans, opening the door for cryptocurrencies to be included in 401(k) retirement plans.

During an interview with Investopedia Express Live on Monday, Hougan previous attempts to block Bitcoin () investment by and regulators’ in 401(k)s “ridiculous.”

“This is just another asset. Does it go up and down? Absolutely. Is there risk in it? Absolutely. But it’s actually less volatile over the last year than Nvidia stock, and you don’t see any rules about banning 401(k) providers from offering Nvidia stock,” he said.

Shares in US tech giant Nvidia a yearly low of roughly $94.31 in April 2025, before spiking to a high of over $207 by October, representing a price swing of 120%. 

On the other hand, Bitcoin fluctuated between a low of $76,000 in April and a high of $126,080 in October, amounting to a 65% swing between the two.

Crypto in 401(k)s has been a long-sought-after opportunity for crypto firms aiming to reach more retail investors and achieve greater financial system legitimacy.

Warren demands SEC answers on crypto in 401(k)

Meanwhile, is demanding answers from the SEC about how it will mitigate any risks for 401(k) plans that choose to invest in “alternative investments,” like crypto.

In an open letter published on Monday, Warren that crypto in retirement plans might not lead to better outcomes for participants due to higher fees and expenses “that typically come with them,” along with crypto’s volatility.

“For most Americans, their 401(k) represents a lifeline to retirement security rather than a playground for financial risk. Allowing crypto into American retirement accounts creates fertile ground for workers and families to lose big,” she added.

Warren has demanded that answer whether the regulator is taking into account volatility when valuing crypto holdings for publicly traded companies no later than Jan. 27.

She also wants to know if the SEC has assessed the use of manipulative practices in crypto markets and if the regulator will publish research and other educational materials to help raise investor awareness.

Crypto in 401(k)s will be normalized, eventually

Outside of Trump’s executive order, in May, the Department of Labor’s Employee Benefits Security Administration a “neutral stance, neither endorsing nor disapproving,” of crypto in 401(k)s after rescinding a compliance release from 2022 that had previously discouraged the practice.

Related:

Hougan said it’s unclear if 401(k) providers will start to invest in crypto during 2026, but predicts it will eventually happen and become normalized.

“These are very slow-moving institutions, but we’re moving in that direction, and eventually it’ll be normalized like other assets, which is how it should be,” he added.

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