Senators Elizabeth Warren and Bernie Sanders, joined by Representative Robert Scott, have formally asked the U.S. Labor Department to scrap the rule that lets retirement savers stash cryptocurrency inside 401(k) plans. In a letter sent this week, the Democratic lawmakers argued that the policy exposes workers to unnecessary risk and gives President Donald Trump an improper financial stake in the outcome.
The letter
The three lawmakers pressed Acting Labor Secretary Julie Su to rescind the regulation, which was adopted during the Trump administration. They said the rule opened the door to volatile investments that ordinary families can't easily evaluate—and that Trump's own business entanglements in the crypto sector create a clear conflict of interest. The letter didn't mince words on that point, calling the president's involvement a direct threat to the impartial administration of retirement law.
Conflict of interest claims
The criticism of Trump is specific. The president has promoted crypto ventures and taken payments in digital assets, the lawmakers note, putting him in a position to personally benefit from policies that push more retirement money into cryptocurrencies. Warren, in particular, has made crypto industry conflicts a recurring theme, and the 401(k) rule gives her a concrete target. The letter warns that without a reversal, the Labor Department is effectively enabling a system where a sitting president's financial interests could shape retirement security for millions.
The Labor Department hasn't publicly responded to the letter yet. The agency has the authority to revoke or rewrite the rule through formal rulemaking, but no timeline has been set. For now, crypto stays in 401(k) menus—but the political pressure is building fast, especially with Trump up for reelection next year. Expect the issue to surface in campaign ads and Senate hearings before the year is out.
