On Monday, Bitwise chief investment officer Matt Hougan said Bitcoin should not be excluded from retirement plans solely because of volatility, arguing some stocks show larger swings and 401(k) managers should be allowed to offer crypto. He made the remarks during an interview and linked the debate to recent policy moves expanding options for defined-contribution plans.
Hougan said, “This is just another asset. Does it go up and down? Absolutely. Is there risk in it? Absolutely. But it’s actually less volatile over the last year than Nvidia stock, and you don’t see any rules about banning 401(k) providers from offering Nvidia stock.” He also called past attempts to block Bitcoin investment “ridiculous.”
He compared price moves, noting Nvidia fell to about $94 in April then rose past $207 by October, a roughly 120% swing. Bitcoin ranged from about $76,000 to $126,000 in the same period, near a 65% swing.
On the same day, Senator Elizabeth Warren sent an open letter to SEC leadership seeking details on how the regulator will value volatile crypto holdings and address manipulation. She wrote, “For most Americans, their 401(k) represents a lifeline to retirement security rather than a playground for financial risk. Allowing crypto into American retirement accounts creates fertile ground for workers and families to lose big.”
The push follows an August executive order by Donald Trump to have the Labor Department review plan restrictions, and a May move by the Department of Labor’s Employee Benefits Security Administration that announced a neutral stance on crypto in 401(k)s after rescinding a 2022 compliance release. Hougan said providers move slowly but expects crypto to be normalized in time.
