Trump’s Crypto Order Endangers Millions of American Retirements, Senators Warn

Democratic Senator Elizabeth Warren and Independent Senator Bernie Sanders are warning that President Donald Trump’s new executive order could have serious consequences for ordinary American savers. They claim that millions could lose their retirement savings if their funds are exposed to risky investments in cryptocurrencies and private equity. The order, signed by Trump in August, opens the door for alternative asset managers to access approximately $13 trillion held in 401(k) retirement accounts. While financial firms welcome the move as a growth opportunity, critics say it threatens the stability and security these retirement plans were built on.

A Letter Full of Warnings On October 28, Warren and Sanders sent a joint letter to Labor Secretary Lori Chavez-DeRemer and Securities and Exchange Commission (SEC) Chairman Paul Atkins. The letter was also signed by five other Democratic senators — Ron Wyden, Dick Durbin, Jeffrey Merkley, Chris Murphy, and Tina Smith. “This executive order exposes hard-earned savings to volatile financial instruments rebranded as ‘alternative assets,’ even though they lack transparency and make exaggerated claims of high returns,” Warren and Sanders wrote in the letter.

New Risks for Retirement Funds The U.S. retirement system has shifted dramatically over the decades. Instead of traditional pension plans, most Americans now rely on 401(k) investment accounts — and those, according to the senators, are now at risk. Trump’s order directs the Department of Labor to review its rules on alternative assets in retirement plans covered by the Employee Retirement Income Security Act of 1974 (ERISA). The department has six months to complete the review. Meanwhile, the SEC is tasked with assessing whether it should make cryptocurrencies and private equity more accessible to retirement portfolios. Critics warn that this could allow millions of Americans — many with limited investment experience — to invest in high-risk assets that might yield big profits but also devastating losses.

“Crypto Is Not an Investment, It’s Gambling” Senators point out that private market products often have fewer regulations and disclosure requirements than publicly traded stocks and bonds. They also argue that cryptocurrencies resemble gambling rather than serious investing. While major funds managing alternative assets see this as an opportunity to attract new capital, senators warn that everyday Americans could end up losing everything. “It’s a victory for Wall Street, but a loss for working families trying to save for retirement,” Sanders said.

Government Silence Amid Shutdown Representatives from both the SEC and the Department of Labor have not yet responded to the accusations. Due to the ongoing government shutdown, their official statements have been delayed. In the meantime, the public debate continues over whether cryptocurrencies and alternative assets should have any place in retirement portfolios that hold the life savings of millions of Americans.

Warren Pushes for Tighter Oversight Elizabeth Warren has long been one of the most vocal critics of the crypto industry. She argues that the sector requires stronger supervision and stricter regulation to prevent fraud and protect the savings of ordinary people. “Without firm oversight and clear rules, crypto can easily become a tool for speculation and loss,” the senator said. “The retirements of millions of Americans are at stake — and that’s not a risk we should be taking.”

Summary From Wall Street’s perspective, Trump’s order is a bold step toward liberalizing investment options, but critics see it as a dangerous gamble with the nation’s retirement savings. As Washington awaits official responses, tensions between policymakers and financial giants are once again reaching a boiling point.

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