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Crypto Rout Puts Brakes on Push to Add Bitcoin to 401(k) Plans

The plunge is cooling employers’ appetite to offer digital assets in retirement menus by reviving fears over fiduciary liability.

Overview

  • Bitcoin has fallen about 50% from its October peak, with roughly $2 trillion in crypto market value wiped out.
  • Fiduciary experts say plan sponsors are likely to steer clear of crypto options due to legal risk, arguing 401(k)s should prioritize secure savings over speculation.
  • Policy momentum remains a backdrop as President Trump’s August order opened defined-contribution plans to alternative assets and SEC chair Paul Atkins said the time is right to open retirement markets to crypto.
  • Crypto-focused retirement provider BlockTrust IRA acknowledged it did not exit positions quickly during the selloff after gathering about $70 million in IRA funds over the past year.
  • Some in the industry, including Franklin Templeton’s Robert Crossley, point to on‑chain wallets and tokenized assets as a longer-term route to modernize retirement administration.