Trump to allow Americans to invest retirement funds in crypto
Republican Congressman Troy Downing is going to introduce a bill aimed at making Donald Trump’s Bitcoin and Crypto 410(k) executive order into federal law. A representative of the congressman confirmed that Downing is going to introduce the bill on Oct. 21.
- President Donald Trump signed an executive order allowing crypto and other “alternative assets” in Americans’ retirement plans on Aug. 7, 2025. The order was dubbed “401k crypto Trump.”
- On top of crypto, the order opens retirement accounts for investing in real estate and private equity.
- If Downing’s bill becomes federal law, it may remove locks for $12 trillion in Americans’ savings to flow into the crypto market.
- Stocks of Bitcoin treasury companies were often promoted as the way to invest money from 401(k) accounts indirectly in Bitcoin. If the bill passes, it may weaken the position of treasury firms.
Who is Troy Downing?
Troy Downing became representative for Montana in 2025. Prior to joining the Congress, Downing worked as a securities and insurance auditor in Montana. On top of that, he served in the Air Force, founded several business ventures, and worked as a researcher and educator at New York University.
As a congressman, he advocated for reversing Biden-era crypto regulation in favor of a more industry-friendly approach. The 401(k) bill will become his first effort at championing crypto regulation in the House of Representatives. It’s worth saying that before Downing introduced other bills, not associated with crypto. His efforts found bipartisan support in the House. However, there’s no guarantee that the Retirement Investment Choice Act will enjoy the same level of support.
Downing advocated for the GENIUS and CLARITY acts during the White House Crypto Week that resulted in the GENIUS Act passage. He emphasized the importance of fostering innovation in the U.S. through “reasonable regulatory frameworks.”
While Downing is pushing for looser regulation and opposes the Gary Gensler-era prohibitive approach to crypto, he is aware of possible risks. In March, he noted during his TV appearance:
“We need to have reasonable sideboards to make sure we don’t have another big blow-up like we did with FTX and Sam Bankman-Fried.”
Retirement Investment Choice Act
Downing’s bill is called the Retirement Investment Choice Act. According to the congressman, the bill would “supercharge” the financial safety of U.S. citizens thanks to the opportunity to use retirement savings accounts for investment in alternative assets.
Traditionally, retirement accounts were used for investment in bonds, stocks, and mutual funds. Trump’s executive order allowed crypto, private equity, and real estate to be included in tax-advantaged 401(k) investment plans.
Trump’s executive order tasked the Securities and Exchange Commission, the Labor Department, and the Treasury with adjusting their rules so that employees could invest in crypto, real estate, or private equity via their pension funds. The Downing bill’s name reflects the increase in available investment options. The money previously locked out from investing in crypto is estimated at $12 trillion.
The “401(k) crypto Trump” is seen as a means to legitimize crypto in the eyes of the broad public, make it more available, and bring more stability to the market.
The federal law status will elevate Trump’s order, making it a nationwide permanent norm.
Competition with Bitcoin ETFs and Bitcoin treasury companies
Adoption of the Retirement Investment Choice Act may be another threat to the already weakening Bitcoin treasury firms’ business. One of the selling points of Bitcoin treasury companies is that they allow people to use their retirement accounts to invest in Bitcoin held by these companies indirectly. It is possible to invest in these firms’ stocks, which are supposed to bring higher yields than Bitcoin (or some other cryptocurrency) itself. To do so, the company’s total stock value should exceed its total Bitcoin value.
Many of these companies fail to fulfill their promise. One of the latest examples is the 4th-biggest corporate Bitcoin holder, Metaplanet. Its stock is 97% down from the peak point. On Oct. 14, 2025, its total stock value dropped below the company’s Bitcoin holdings, making its stock less profitable than the direct investment in Bitcoin.
Such cases continue to snowball beginning from the second half of the summer of 2025. Sequans and Nakamoto are other notable examples of Bitcoin treasuries with stocks down 98% and 80% respectively.
Bitcoin ETFs have been the main competitor of Bitcoin treasury companies in the TradFi sector, trying to make use of Bitcoin. Jack Mallers, the CEO of a Twenty-One Capital Bitcoin treasury with stock down nearly 60%, tried to explain why Bitcoin treasuries are better than Bitcoin ETFs, saying:
“What makes us uniquely different than an ETF is we’re an operating company, so we’re founded as a Bitcoin business with a core goal of increasing what we call Bitcoin per share. Our goal is to be the best way for the capital markets to participate in this Bitcoin story.”
If a $12 trillion capital gets unlocked for the 401(k) investment plans, Bitcoin treasury companies may lose a huge portion of investors, as many people would have an opportunity to invest in Bitcoin directly. Given the falling stock prices of these companies, they will have to offer more benefits to keep investors loyal.
