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Sen. Bernie Sanders (I-Vt.) speaks at an impromptu press conference on recent election results, in Washington DC, United States on November 5, 2025.
(Photo by Nathan Posner/Anadolu via Getty Images)
'Harmful to American Workers': Warren, Sanders Lead Charge Against Trump Crypto Scheme for 401Ks
“This would strip long-held investor protections from retirement savers and encourage the use of more risky, complex, and expensive investments."
Jun 02, 2026
Two progressive US senators are leading the charge against a new Trump administration scheme that would allow Americans' retirement funds to invest in cryptocurrencies.
As reported by The Guardian on Tuesday, Sens. Bernie Sanders (I-Vt.) and Elizabeth Warren (D-Mass.), along with Rep. Bobby Scott (D-Va.), sent a letter to the US Department of Labor (DOL) warning against enacting a proposed rule change that would allow 401(k) investments to include crypto.
Cryptocurrencies have long proven to be volatile assets that have been involved in multiple fraud schemes, which the FBI estimates cost Americans more than $20 billion in 2025 alone.
“This would strip long-held investor protections from retirement savers and encourage the use of more risky, complex, and expensive investments,” states the letter. “The proposed rule is harmful to American workers.”
Offering an example of the dangers of investing in crypto, the letter cites President Donald Trump's personal meme coin, whose value has cratered since its peak in January 2025.
The push to let 401(k)s invest in crypto has also drawn criticism from Americans for Financial Reform (AFR), which on Monday released a white paper outlining how the plan would put Americans' retirement savings at risk while also serving as a boon to the private equity industry.
Oscar Valdés Viera, senior policy analyst for private equity and capital markets at AFR, accused the DOL of handing over US retirement savings to "the worst Wall Street predators and crypto scammers."
"This proposal would use 401(k)s to bail out a struggling industry and advance the administration’s push to embed crypto deeper into the financial system," Valdés Viera explained. "Driving workers into the arms of private equity firms and crypto insiders would let the president’s Wall Street and crypto cronies pocket billions at the expense of families’ retirement security."
Democracy Defenders Fund (DDF) last week noted that Trump and his family, who have major ties to the cryptocurrency industry, would stand to personally profit from the DOL's proposed rule change.
"President Trump stands to benefit if ordinary people can use their employer-sponsored retirement plans to invest in crypto," said Virginia Canter, chief counsel and director of ethics and anti-corruption at DDF. "The administration claims the proposed rule would 'relieve regulatory burdens,' but it looks more like self-dealing."
In addition to allowing 401(k)s to invest in cryptocurrencies, the proposed DOL rule change would also allow them to invest in private credit assets, which are typically loans negotiated with non-bank lenders.
Benjamin Schiffrin, director of securities policy for Better Markets, said on Tuesday that letting 401(k)s invest in these assets would be a similarly risky bet to letting them invest in crypto.
"This is exactly the wrong approach at the wrong time," said Schiffrin. "There could hardly be a proposal more dangerous to Americans’ retirement security. Investors already in private credit are currently running for the exits. DOL’s proposal means that one day millions of Americans with 401(k)s may have to do the same."
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Two progressive US senators are leading the charge against a new Trump administration scheme that would allow Americans' retirement funds to invest in cryptocurrencies.
As reported by The Guardian on Tuesday, Sens. Bernie Sanders (I-Vt.) and Elizabeth Warren (D-Mass.), along with Rep. Bobby Scott (D-Va.), sent a letter to the US Department of Labor (DOL) warning against enacting a proposed rule change that would allow 401(k) investments to include crypto.
Cryptocurrencies have long proven to be volatile assets that have been involved in multiple fraud schemes, which the FBI estimates cost Americans more than $20 billion in 2025 alone.
“This would strip long-held investor protections from retirement savers and encourage the use of more risky, complex, and expensive investments,” states the letter. “The proposed rule is harmful to American workers.”
Offering an example of the dangers of investing in crypto, the letter cites President Donald Trump's personal meme coin, whose value has cratered since its peak in January 2025.
The push to let 401(k)s invest in crypto has also drawn criticism from Americans for Financial Reform (AFR), which on Monday released a white paper outlining how the plan would put Americans' retirement savings at risk while also serving as a boon to the private equity industry.
Oscar Valdés Viera, senior policy analyst for private equity and capital markets at AFR, accused the DOL of handing over US retirement savings to "the worst Wall Street predators and crypto scammers."
"This proposal would use 401(k)s to bail out a struggling industry and advance the administration’s push to embed crypto deeper into the financial system," Valdés Viera explained. "Driving workers into the arms of private equity firms and crypto insiders would let the president’s Wall Street and crypto cronies pocket billions at the expense of families’ retirement security."
Democracy Defenders Fund (DDF) last week noted that Trump and his family, who have major ties to the cryptocurrency industry, would stand to personally profit from the DOL's proposed rule change.
"President Trump stands to benefit if ordinary people can use their employer-sponsored retirement plans to invest in crypto," said Virginia Canter, chief counsel and director of ethics and anti-corruption at DDF. "The administration claims the proposed rule would 'relieve regulatory burdens,' but it looks more like self-dealing."
In addition to allowing 401(k)s to invest in cryptocurrencies, the proposed DOL rule change would also allow them to invest in private credit assets, which are typically loans negotiated with non-bank lenders.
Benjamin Schiffrin, director of securities policy for Better Markets, said on Tuesday that letting 401(k)s invest in these assets would be a similarly risky bet to letting them invest in crypto.
"This is exactly the wrong approach at the wrong time," said Schiffrin. "There could hardly be a proposal more dangerous to Americans’ retirement security. Investors already in private credit are currently running for the exits. DOL’s proposal means that one day millions of Americans with 401(k)s may have to do the same."
From Your Site Articles
- New Labor Department Guidance Allows Risky Private Equity Investments in Workers' 401(k) Accounts ›
- 'Disaster in the Making': Trump to Open 401(k)s to Crypto, Private Equity Vultures ›
- New Trump Rule Would Let Private Equity, Crypto ‘Endanger Retirement Savings of Millions' ›
Related Articles Around the Web
Two progressive US senators are leading the charge against a new Trump administration scheme that would allow Americans' retirement funds to invest in cryptocurrencies.
As reported by The Guardian on Tuesday, Sens. Bernie Sanders (I-Vt.) and Elizabeth Warren (D-Mass.), along with Rep. Bobby Scott (D-Va.), sent a letter to the US Department of Labor (DOL) warning against enacting a proposed rule change that would allow 401(k) investments to include crypto.
Cryptocurrencies have long proven to be volatile assets that have been involved in multiple fraud schemes, which the FBI estimates cost Americans more than $20 billion in 2025 alone.
“This would strip long-held investor protections from retirement savers and encourage the use of more risky, complex, and expensive investments,” states the letter. “The proposed rule is harmful to American workers.”
Offering an example of the dangers of investing in crypto, the letter cites President Donald Trump's personal meme coin, whose value has cratered since its peak in January 2025.
The push to let 401(k)s invest in crypto has also drawn criticism from Americans for Financial Reform (AFR), which on Monday released a white paper outlining how the plan would put Americans' retirement savings at risk while also serving as a boon to the private equity industry.
Oscar Valdés Viera, senior policy analyst for private equity and capital markets at AFR, accused the DOL of handing over US retirement savings to "the worst Wall Street predators and crypto scammers."
"This proposal would use 401(k)s to bail out a struggling industry and advance the administration’s push to embed crypto deeper into the financial system," Valdés Viera explained. "Driving workers into the arms of private equity firms and crypto insiders would let the president’s Wall Street and crypto cronies pocket billions at the expense of families’ retirement security."
Democracy Defenders Fund (DDF) last week noted that Trump and his family, who have major ties to the cryptocurrency industry, would stand to personally profit from the DOL's proposed rule change.
"President Trump stands to benefit if ordinary people can use their employer-sponsored retirement plans to invest in crypto," said Virginia Canter, chief counsel and director of ethics and anti-corruption at DDF. "The administration claims the proposed rule would 'relieve regulatory burdens,' but it looks more like self-dealing."
In addition to allowing 401(k)s to invest in cryptocurrencies, the proposed DOL rule change would also allow them to invest in private credit assets, which are typically loans negotiated with non-bank lenders.
Benjamin Schiffrin, director of securities policy for Better Markets, said on Tuesday that letting 401(k)s invest in these assets would be a similarly risky bet to letting them invest in crypto.
"This is exactly the wrong approach at the wrong time," said Schiffrin. "There could hardly be a proposal more dangerous to Americans’ retirement security. Investors already in private credit are currently running for the exits. DOL’s proposal means that one day millions of Americans with 401(k)s may have to do the same."
From Your Site Articles
- New Labor Department Guidance Allows Risky Private Equity Investments in Workers' 401(k) Accounts ›
- 'Disaster in the Making': Trump to Open 401(k)s to Crypto, Private Equity Vultures ›
- New Trump Rule Would Let Private Equity, Crypto ‘Endanger Retirement Savings of Millions' ›
Related Articles Around the Web
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