Paul Atkins, Chair of the U.S. Securities and Exchange Commission (SEC), says “the time is right” for retirement plans such as 401(k)s to add cryptocurrencies.
Claim 50% Off TipRanks Premium
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential
Atkins made the comments in an appearance on CNBC as the U.S. Senate considers draft legislation pertaining to cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and Dogecoin (DOGE), and the ways in which digital assets are regulated.
“A lot of people are already exposed to crypto and other sorts of assets like that through their pension funds,” Atkins said in the interview. “I think the time is right to go forward with that,” referring to adding cryptocurrencies more broadly to people’s pension plans.
Cautions on Crypto
Until now, the U.S. government and regulators had cautioned against adding Bitcoin and other crypto to pension plans, deeming the assets too risky. The U.S. Department of Labor previously said that asset managers should “exercise extreme care before they consider adding a cryptocurrency option to a 401(k) plan’s investment menu for plan participants.”
However, last summer, U.S. President Donald Trump signed an executive order that now allows crypto investments in 401(k) retirement plans, opening up access to an estimated $10 trillion asset class. The White House has said that alternative assets such as crypto offer competitive returns and diversification benefits to retirement plans.
Is Bitcoin a Buy?
Most analysts don’t offer ratings or price targets on Bitcoin. So instead, we’ll look at the three-month performance of BTC. As one can see in the chart below, the price of Bitcoin has declined 19.54% in the last 12 weeks.
