Major changes in U.S. financial policy: 401(k) plan embraces Crypto Assets, SEC regulation shifts to a more lenient approach.

After U.S. President Trump issued an executive order aimed at opening alternative asset investments, including Crypto Assets, to 401(k) pension plans, lawmakers are urging the U.S. Securities and Exchange Commission (SEC) to swiftly implement new regulations. This move is intended to provide over 90 million American retirement savers with broader investment options. Meanwhile, under the leadership of new Chairman Paul Atkins, the SEC is also undergoing a significant policy shift, moving away from the previous chairman's 'enforcement-style regulation' model towards a more collaborative and flexible approach to the Crypto industry. The coordinated development of these two policies is paving the way for Crypto Assets to enter the mainstream U.S. financial system.

1. 401(k) The plan is open, and Crypto Assets are allowed in.

On September 22, U.S. House Financial Services Committee Chairman Franky Hill and senior member Maxine Waters wrote to SEC Chairman Paul Atkins, urging him to quickly revise the rules to implement the executive order recently signed by President Trump. The executive order aims to open alternative asset investments, including Crypto Assets, to a retirement market worth $12.5 trillion.

This executive order was issued on August 7, directing the U.S. Department of Labor to re-examine the guidance under the Employee Retirement Income Security Act (ERISA). Its specific goal is to remove barriers for 401(k) plan participants to allocate a portion of their funds into private equity, real estate, digital assets, and other alternative investments in coordination with the Labor Secretary, the Treasury, the SEC, and other regulatory agencies.

Lawmakers are urging the SEC to broaden the definition of "qualified investor" to include professionals certified by FINRA. They believe that allowing for moderate allocations to these assets can enhance risk-adjusted net returns and modernize retirement investment strategies. This initiative revives a proposal first put forward during Trump's first term, which was shelved during the Biden administration.

( 2. The SEC's regulatory philosophy makes a big turn, saying goodbye to "enforcement-style regulation"

The SEC is signaling a significant policy shift, moving away from the litigation-driven regulatory approach of the previous administration and adopting a more collaborative stance towards the crypto assets industry and publicly listed companies.

SEC Chairman Paul Atkins confirmed during an interview with CNBC on September 19 that the agency is prioritizing reforms that may ease quarterly reporting requirements. This proposal would allow companies, including those in the crypto assets industry, to negotiate with investors and banks to set reporting periods in a more flexible manner. Atkins noted that semi-annual reports are already the standard for foreign issuers trading in the U.S. market and described this adjustment as "a good step forward."

This initiative responds to President Trump’s repeated call on September 15 to replace quarterly reports with semiannual reports, as he believes this can reduce costs and lessen short-term pressure on executives.

Atkins also announced a new regulatory philosophy for Crypto Assets. In a report released on September 15, he stated that the SEC would end the "enforcement-based regulatory" model established during the tenure of former Chairman Gary Gensler. Instead, companies will receive preliminary notices of potential technical violations and will have up to six months to address the issues before enforcement actions are considered. Atkins also rejected the idea of categorizing all Crypto Assets as securities, maintaining an open attitude towards tokenized stocks and bonds that mimic existing financial instruments. Since taking office in April, he has dismissed several high-profile cases inherited from the Gensler era and established a Crypto Assets working group. This working group is scheduled to hold a public hearing on October 17 to examine financial privacy and regulatory tools.

Conclusion

The Trump administration opened the massive 401)k### retirement market with an executive order, while the new leadership of the SEC responded to this call in a more moderate and constructive manner, which is no coincidence. The parallel development of these two policies paints a picture of a new era in U.S. financial regulation. It aims to provide the long-desired regulatory clarity for the encryption industry and bring it into the traditional financial sector valued at trillions of dollars. Incorporating digital assets into Americans' retirement savings plans will not only inject a huge new capital into the market but also fundamentally change the public's perception of Crypto Assets, transforming them from speculative assets into a mainstream, trusted investment category. This signifies that the U.S. is taking a key and pragmatic step toward its vision of becoming a global center for crypto capital and may trigger a financial investment revolution on a global scale.