Bitwise CIO Matt Hougan criticized Senator Elizabeth Warren’s attempt to block Bitcoin in 401(k) plans, arguing that volatility alone is not a valid reason.
By Bhushan Akolkar
Editor Hamza Tariq
Updated
3 mins read
Crypto asset manager Bitwise has criticized Senator Elizabeth Warren over her recent efforts to block Bitcoin BTC $91 841 24h volatility: 1.5% Market cap: $1.84 T Vol. 24h: $47.83 B investments in 401(k) retirement plans.
In her letter to SEC Chair Paul Atkins on Jan. 12, Warren noted that having Bitcoin as part of 401(k) funds will not “lead to better outcomes overall.”
This has raised a fresh debate among industry players who believe that Senator Warren is looking to block crypto adoption in mainstream finance.
Matt Hougan, the chief investment officer (CIO) at Bitwise, called Senator Elizabeth Warren’s proposals to block Bitcoin 401(k) investments “ridiculous.”
He said that volatility can’t be used as an excuse for blocking BTC investments in the retirement funds. Hougan stated that by the same logic, even stocks face price swings.
Hougan’s remarks came the same day U.S. Senator Elizabeth Warren questioned the Securities and Exchange Commission (SEC) on how it plans to manage risks associated with allowing cryptocurrencies in retirement accounts.
In August 2025, U.S. President Donald Trump signed an executive order directing the Department of Labor to review existing restrictions on alternative assets.
The move opened the possibility for cryptocurrencies to be included in 401(k) retirement offerings.
Speaking during an interview on Investopedia Express Live on Jan. 12, Hougan criticized past efforts by asset managers such as Vanguard, along with regulatory guidance discouraging Bitcoin’s inclusion in retirement plans. He 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.”
Allowing cryptocurrencies in 401(k) plans has long been a key objective for crypto firms seeking broader access to retail investors.
It will also lead to a greater acceptance of digital assets in mainstream finance. For greater clarity, lawmakers are also working on the crypto market structure bill, scheduled to arrive by the end of Jan. 2026.
U.S. Senator Elizabeth Warren has pressed the Securities and Exchange Commission (SEC) to explain how it plans to manage risks for 401(k) plans that choose to invest in “alternative investments,” including cryptocurrencies.
In an open letter released on Jan. 12, Warren warned that adding crypto to retirement plans may not improve outcomes for savers.
She pointed to the sector’s volatility, along with higher fees and associated costs.
Warren warned that most Americans rely on their 401(k) as a cornerstone of retirement security, not a vehicle for speculative investments that could lead to significant losses for workers and families.
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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
