As the Department of Labor considers expanding 401(k) options to include alternative assets, Waters urges a reconsideration of the plan.
By Jesse Hamilton|Edited by Stephen Alpher Jun 26, 2026, 7:38 p.m. 2 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on U.S. Representative Maxine Waters is against the Labor Department's proposal to include crypto in retirement accounts. (Pete Marovich/Getty Images)SummaryShow- In response to the Labor Department's plan to broaden 401(k) investment options to include cryptocurrencies and other alternative assets, a prominent House Democrat is urging a reconsideration.
- Maxine Waters, who is the leading Democrat on the House Financial Services Committee and is likely to become its chair, has formally requested the withdrawal of the proposal.
Maxine Waters, a U.S. Representative poised to lead the House Financial Services Committee if the Democrats succeed in the upcoming elections, is advocating for the Department of Labor to retract its proposal promoting the inclusion of cryptocurrencies in 401(k) retirement plans.
Earlier this year, the Labor Department announced a rule aimed at fulfilling a directive from former President Donald Trump that would allow 401(k) accounts to be invested in private equity, real estate, commodities, and digital assets. This week, Waters submitted a comprehensive 11-page letter to the department requesting that this initiative be withdrawn.
Waters criticized the proposal in her letter, stating, "It is incoherent for the department to endorse digital assets as appropriate for the retirement savings of everyday Americans while the [Securities and Exchange Commission] is still developing the investor protection measures necessary to ensure the safety of these assets for average investors." She continued, "The risks extend beyond the volatility of individual tokens; they highlight a significant decline across the entire digital asset landscape, where trading volume, developer activity, and user engagement have sharply fallen."
If Democrats gain control of the House of Representatives in the November midterm elections, Waters could reclaim her previous position as committee chair. Currently, Kalshi betting places the probability of this at 82%. Although the committee does not directly manage 401(k) regulations, it oversees the SEC, which governs investment practices.
In her communication to the acting Labor Secretary, Keith Sonderling, she pointed out that the proposal, which is still in draft form, poses a risk to investors by exposing them to a digital market that "functions without any federal oversight and has led to significant losses for investors."
In August of last year, Trump issued an executive order aimed at allowing individuals with government-managed retirement accounts to "participate, either directly or through their retirement plans, in the potential growth and diversification opportunities associated with alternative asset investments."
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