SEC's Paul Atkins Greenlights Crypto in 401(k)s — "The Time Is Right" for Managed Exposure

SEC Chair Paul Atkins openly supported including cryptocurrency exposure in U.S. 401(k) retirement plans on January 28, 2026, stating that "the time is right" provided the assets are managed by professionals and supported by robust protective guardrails to protect retirees from undue risk. He argued for a regulated, trustee-led strategy similar to how private equity is treated in retirement accounts—where professional fund managers, rather than personal participants, decide allocations—and pointed out that millions of Americans currently have indirect exposure to digital assets through managed pension funds and corporate vehicles.

During a CNBC appearance with CFTC Chair Mike Selig, where both officials stressed deepening SEC-CFTC cooperation to encourage responsible cryptocurrency innovation while preserving investor protections, Atkins made the comments. Addressing worries voiced by Senator Elizabeth Warren about the volatility of cryptocurrencies, Atkins emphasized the need of a measured, ordered introduction consistent with the general policy direction set by President Trump's executive order urging alternative assets in retirement portfolios. He also corrected fresh SEC advice separating authorized derivatives or synthetic products from correctly tokenized actual stocks (which need issuer permission).

Should they be adopted, Atkins's backing might give Bitcoin, Ethereum, and other digital assets access to the huge $12.5 trillion 401(k) market via expertly handled funds and ETFs. This growth would constitute a huge regulatory victory for the cryptocurrency sector, perhaps attracting substantial institutional inflows and helping already positioned companies such Coinbase, asset managers, and spot crypto ETF issuers able to provide such exposure under fiduciary supervision.