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Senator Elizabeth Warren is demanding clarity from the Securities and Exchange Commission over the protection of retirement savers, as the Trump administration moves to integrate cryptocurrencies into 401(k) plans.
In a letter sent Monday to SEC Chair Paul Atkins, Warren asks how the agency plans to protect investors as regulators reconsider whether cryptocurrencies should be permitted.
The review follows an August 2025 executive order by President Trump instructing federal agencies to revisit guidance governing retirement investments, despite months of market turbulence.
"There is no reason to expect that inviting plans to offer these alternative investments will lead to better outcomes overall for participants—especially considering the higher fees and expenses that typically come with them,” Warren wrote. “But there is ample reason to think these investment options will make things worse by increasing the risk of large losses for participants, most of whom can ill afford them."
Warren argued that expanding access to crypto through retirement plans could expose workers to higher fees, limited transparency, and sharp losses during market downturns, while also reducing the SEC’s authority to police the industry.
She also echoed concerns raised by regulators who accused Trump of financial conflicts of interest tied to the crypto sector.
She warned that proposed market-structure legislation could allow tokenized financial products to fall outside existing securities rules, limiting the agency’s ability to enforce disclosure standards and monitor market behavior as crypto products move closer to mainstream investment channels.
“President Trump’s sudden embrace of the crypto industry appears to be driven by his own conflicts of interest and ability to profit from crypto free-for-alls,” Warren wrote. “Since the beginning of his second term, President Trump and his family have amassed over $1.2 billion in financial gains from crypto.”
The letter asks whether the SEC has ensured that companies holding or issuing crypto assets use fair-value measurements in public disclosures, whether the agency has assessed the prevalence of manipulative practices in digital asset markets, and what investor education resources are available as access expands through retirement plans.
Warren set a Jan. 27 deadline for the SEC to respond, stressing that the agency’s approach to crypto oversight could have real consequences for retirement savers. Calling 401(k)s a foundation of long-term financial security for most Americans, she warned that allowing volatile and opaque crypto assets into those accounts could expose workers and families to significant losses.
The office of Senator Warren did not immediately respond to requests for comment by Decrypt.
Since President Trump returned to office in January 2025, cryptocurrency markets have swung sharply.
Bitcoin climbed to record highs last year, closing at $111,679 on May 22 and reaching above $125,000 on Oct. 4, before topping $126,000 two days later.
The rally did not hold, however, and Bitcoin began to slide later in 2025, giving back a significant share of those gains. Bitcoin is trading around $91,200 according to CoinGecko.
The uneven performance has reinforced questions among policymakers about whether assets prone to rapid price swings are appropriate for retirement portfolios.
“The EO will open the floodgates for financial firms to gamble with trillions of dollars of workers’ retirement savings by pushing risky assets, including cryptocurrencies, into defined contribution plans,” the letter said.