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- Bitwise’s Matt Hougan says Bitcoin volatility shouldn’t bar access in 401(k)s.
- Nvidia’s price swings far exceeded Bitcoin’s during the same period, data shows.
- Retirement plans already handle high-volatility assets without special limits.
Bitwise is challenging renewed concerns over Bitcoin’s role in U.S. retirement plans as the policy debate expands across Washington. The company’s Chief Investment Officer, Matt Hougan, said in an interview, volatility should not be used as a justification to block access. His remarks arrive as lawmakers examine crypto regulation and request new guidance from federal agencies.
Hougan said Bitcoin’s market behavior is not exceptional when compared with well-known technology stocks. He noted that several equities available inside 401(k) plans have shown sharper swings. He said this comparison highlights why volatility should not be viewed as a barrier to offering digital assets in retirement accounts.
Hougan pointed to recent data to support his argument. Bitcoin moved about 65% between April and October 2025. Nvidia shares shifted roughly 120% in the same period. Hougan said this gap demonstrates that traditional assets can be more unstable than Bitcoin.
Bitcoin’s Role in Retirement Plans Faces New Scrutiny
He added that Bitcoin should be reviewed like any other investment option. All assets carry risk, and retirement portfolios routinely manage such exposure. He said there are no prohibitions on stocks with heavy price movements, and that crypto should not be treated differently.
U.S. Senator Elizabeth Warren raised concerns about allowing crypto inside retirement accounts. In a letter to Securities and Exchange Commission Chair Paul Atkins, she said 401(k) plans are to protect long-term savings. She warned that adding crypto increases the possibility of steep losses for workers.
Warren highlighted the issues she considers most serious. She said crypto fees can be higher than traditional products. She also pointed to volatility and the lack of standardized methods for measuring returns. Warren asked the SEC to outline how it evaluates these risks.
Also Read: Bitmain Reveals $14B Crypto Treasury as Ethereum Holdings Hit 3.45% of Total Supply
Her letter included several policy questions. She asked how publicly listed companies report the valuation of crypto assets. She also requested information about investor education programs. Warren said workers must understand how these products function before they appear inside retirement plans.
Policy Shift Expands Options for Crypto in Retirement Plans
The discussion intensified after U.S. President Donald Trump signed an executive order in August 2025. The order directed the Labor Department to review rules for alternative assets in retirement accounts. It expanded the possibility of including cryptocurrencies, private equity, and other non-traditional products.
The Labor Department subsequently adopted a neutral stance. It repealed previous regulations that discouraged crypto exposure in 401(k) plans. This presented a new prospect to the asset managers and employers to regard digital assets as optional parts.
Industry analysts predict further developments will occur at a slow pace. They claimed that retirement administrators are slow to respond when new products are introduced. They, however, explained that the review process will assist in establishing the alignment of digital assets with the existing protections.
Employers have a mandate of screening investment options. They should be risk conscious and make decent disclosures. Regulators will continue to formulate rules to guide how retirement plans can incorporate new assets. The discussion will keep on going as the agencies and legislators deliberate on the role of crypto as part of long-term savings schemes.
Also Read: Bitcoin Seizure Approved as South Korea Supreme Court Sets Legal Precedent
