Sanders, Warren and Scott Condemn Rule Opening $14.2 Trillion 401(k)s to Bitcoin
Updated
Updated · Bitcoin Magazine · Jun 2
Sanders, Warren and Scott Condemn Rule Opening $14.2 Trillion 401(k)s to Bitcoin
3 articles · Updated · Bitcoin Magazine · Jun 2
Summary
A 14-page letter sent Monday urges the Labor Department to scrap its March proposal, saying it would let 401(k) fiduciaries offer crypto, private equity and private credit while weakening worker protections.
The lawmakers argue the rule flips ERISA’s prudence standard by effectively presuming due diligence if managers follow a process, rather than requiring them to prove investments are prudent.
Their warning leans on risk data: FINRA says crypto can carry a significant chance of total loss, and the FBI logged more than $11 billion in cryptocurrency fraud losses in 2025.
Trump’s family crypto ties sharpened the attack, with Democrats saying ventures that have raised an estimated $5 billion could benefit if retirement accounts are opened to digital assets.
The administration defends the proposal as expanding worker choice, with Acting Labor Secretary Keith Sonderling saying managers would still have to evaluate offerings through a prudent process.