Crypto 401(k) under threat after market crash of $2 trillion. Following a sharp decline that wiped out over $2 trillion in market Capital across the entire crypto market, the US program allowing crypto investments in 401(k) retirement plans is facing significant pressure from regulators and lawmakers, due to concerns about risks for individual investors. New regulations and the market crash. The Trump administration expanded regulations from mid-2025, allowing 401(k) schemes to include crypto via ETFs or managed funds (not self-custody), aiming to democratize access to alternative assets like BTC/ ETH alongside private equity and real estate. However, the latest bear market (BTC plummeting from its peak) has led regulators like the DOL and SEC to question the suitability of crypto in retirement plans, which are designed to protect workers' long-term savings. Pressure from regulatory and legislative bodies. The Department of Labor (DOL) is XEM the guidance and related elements, raising the possibility of tightening or completely banning crypto in 401(k) schemes due to its high volatility, lack of transparency, and significant risk of loss for non-professional investors. Republican and Democratic lawmakers have both voiced criticism, arguing that including high-risk assets in retirement funds goes against the principle of protecting workers, especially since many 401(k) plans have seen their portfolios depreciate significantly. Consequences for investors and the industry If restricted, individual investors would only have access to crypto through self-managed IRAs (Individual Retirement Accounts) instead of employer-sponsored 401(k) plans, reducing its appeal in terms of taxes and double contributions. The crypto industry is concerned that this move could slow the adoption and accessibility of cryptocurrencies for institutions and retail investors, returning to a period of regulatory oversight similar to that before 2025, even though some BTC ETFs will still hold a significant position in the portfolio.