U.S. regulators are moving closer to allowing bitcoin in Americans’ retirement savings. SEC Chair Paul Atkins says the “time is right” to let digital assets enter 401(k) plans, as long as strong protections are in place for retirees.

Atkins made his comments during an interview with CNBC. He said many Americans already have some exposure to digital assets through pension funds. Allowing bitcoin in 401(k)s, he explained, would give regular workers access to the same kinds of investments used by large institutions.

Atkins added:

The U.S. 401(k) system is huge. It holds about $12.5 trillion in retirement savings. If bitcoin is allowed into this market, even in a limited way, it could bring billions of dollars into digital assets over time.

This push gained momentum in August 2025, when President Donald Trump signed an executive order. The order told federal agencies to expand access to alternative investments, including digital assets, inside 401(k) plans.

While the order did not immediately change the rules, it opened the door for agencies like the SEC and the Department of Labor to create new guidance. The White House said alternative assets could offer better diversification and long-term returns.

Atkins stressed that digital assets in 401(k)s would not mean workers picking coins on their own. Instead, professional managers would decide which investments are allowed, just like they do now with stocks and bonds.

The framework plays a key role, as trustees and fund managers determine which assets are included, rather than individual participants making those decisions.

The SEC plans to move carefully. It is starting with private securities and private equity, which already exist in managed retirement accounts. Bitcoin would follow a similar path.

Some lawmakers strongly disagree with the idea. Senator Elizabeth Warren, a longtime Bitcoin critic, has warned that digital assets are too volatile and could harm retirement savings. She has also raised concerns about transparency and conflicts of interest.

In the past, the Department of Labor told retirement plan managers to “exercise extreme care” when considering digital assets. That guidance has now shifted following President Trump’s executive order.

Atkins acknowledged the risks but said protections are the priority. He emphasized the need for caution, saying careful and measured implementation is important.

At the same time, U.S. regulators are trying to clarify how digital assets are regulated more broadly. The SEC is now working closely with the Commodity Futures Trading Commission (CFTC).

CFTC Chair Michael Selig, who also took part in the CNBC interview, said Bitcoin is at a turning point. He believes digital assets will “flourish” once the U.S. creates clear national rules.

The two agencies have restarted Project Crypto, a joint effort to modernize financial rules for the digital age. Their goal is to reduce confusion while still allowing innovation.

Selig said many blockchain companies moved overseas because U.S. rules were unclear. With better regulations, he believes those companies can return. Both regulators say clear rules could make the U.S. a global leader in digital assets.