U.S. Republican lawmaker pushes to codify Trump's executive order on retirement-plan virtual asset investments

U.S. Republican Representative Troy Downing (Troy Downing) has introduced a bill to put into law President Donald Trump (Donald Trump)'s executive order allowing 401(k) retirement plans to invest in virtual assets.

According to The Block on the 14th (local time), Rep. Downing submitted a draft bill to the House Financial Services Committee to convert Executive Order 14330 into law. The order's core is to allow retirement-plan participants to invest, at the discretion of plan managers, in 'alternative assets' such as real estate, private equity, infrastructure projects, commodities, and digital assets.

President Trump signed the executive order on August 7, directing the Department of Labor, the U.S. Securities and Exchange Commission (SEC), and the Secretary of the Treasury to prepare related guidance within six months. However, because an executive order is not legally binding and can be rescinded by a subsequent administration or court ruling, Rep. Downing appears intent on making the policy permanent through this bill.

The bill was introduced even amid a temporary federal government shutdown. Congress can still introduce and debate bills during a funding lapse.

Earlier, in May, the U.S. Department of Labor rescinded the Biden administration's 'guidance recommending a cautious review of virtual asset investments.' Since then, the Trump administration has officially recognized alternative assets, including virtual assets, as eligible for retirement plans and has been accelerating the reforms.

Currently, 401(k) plans are the most representative employer-matching retirement savings vehicle in the U.S., and according to the Investment Company Institute (ICI), as of June 2025 Americans hold a total of $9.3 trillion in 401(k) assets.

Some experts warn that including virtual assets could undermine retirement-plan stability, but the crypto industry expects the move to be a catalyst for broader Bitcoin adoption. André Dragosch, head of European research at Bitwise, said in August, "If virtual assets are officially permitted as retirement-plan investment assets, billions of dollars of new funds will flow into the market."