Elizabeth Warren and Bernie Sanders Urge Labor Department to Block Crypto in 401(k) Plans

U.S. Senators Elizabeth Warren and Bernie Sanders, along with Representative Robert “Bobby” Scott, are calling on the Department of Labor to withdraw a proposed rule that could allow cryptocurrencies and other alternative assets to be included in 401(k) retirement plans.

In a letter sent to Acting Labor Secretary Keith Sonderling on June 1, the lawmakers argued that the proposal would expose retirement savers to unnecessary financial risks. They warned that the rule would create a “safe harbor” for plan fiduciaries, making it easier to offer investments such as digital assets, private equity and real estate within retirement accounts.

Concerns Over Crypto Volatility and Fraud

The lawmakers said cryptocurrencies remain highly volatile and pointed to the sharp decline of President Donald Trump’s memecoin, which rose above $73 before falling to around $2. They argued that such price swings demonstrate the risks associated with including digital assets in retirement portfolios.

The group also cited an FBI report showing that crypto-related fraud losses exceeded $11 billion in 2025, a record high that further raised concerns about investor protection.

Questions Raised Over Potential Conflicts of Interest

Warren, Sanders and Scott also questioned potential conflicts of interest involving the Trump family’s crypto ventures. They noted reports that the family accumulated billions of dollars in paper wealth through crypto-related projects.

The lawmakers said retirement regulations should prioritize protecting workers and retirees rather than encouraging exposure to complex and speculative investments.