TLDR Warren warns workers could lose big due to crypto’s volatility in 401(k)s. The U.S. dropped federal warnings against crypto in retirement accounts in 2025.TLDR Warren warns workers could lose big due to crypto’s volatility in 401(k)s. The U.S. dropped federal warnings against crypto in retirement accounts in 2025.

Elizabeth Warren Warns Crypto In Retirement Plans Is Too Risky

3 min read

TLDR

  • Warren warns workers could lose big due to crypto’s volatility in 401(k)s.
  • The U.S. dropped federal warnings against crypto in retirement accounts in 2025.
  • Crypto lacks regulatory oversight and historical data, Warren says.
  • Lawmakers share Warren’s concerns about risky assets in retirement savings.

Senator Elizabeth Warren is warning that millions of Americans could “lose big” as a new U.S. policy allows cryptocurrency investments in 401(k) retirement accounts. She argues that these digital assets are too volatile, lack proper regulation, and pose major risks to long-term savings. With the removal of federal guidance that once discouraged crypto in retirement plans, Warren is calling for urgent answers and stronger safeguards to protect American workers’ futures.

Elizabeth Warren Criticizes Crypto in 401(k) Accounts

Senator Elizabeth Warren has voiced strong concerns over the inclusion of cryptocurrency in retirement savings plans such as 401(k)s. She believes this could put American workers and families at serious risk due to the highly volatile nature of crypto assets.

In a public statement, Warren said, “I’m pushing for answers,” as she questioned the decision to allow crypto exposure in retirement accounts. Her warning follows a policy reversal in 2025, where federal guidance advising caution on crypto was officially withdrawn.

Crypto’s Risk Profile Under Scrutiny

Cryptocurrency has long been known for its unpredictable price swings and lack of traditional regulation. The Department of Labor had previously advised against crypto in retirement plans, citing its speculative nature and the absence of standard valuation methods.

Warren echoed these concerns, saying that digital assets are too speculative for retirement savings, especially for average workers who rely on these funds for long-term security. “A 401(k) is not the place for risky bets,” she said in her communication to the Securities and Exchange Commission (SEC).

She further stated that crypto markets often operate without transparent oversight, which could expose investors to sudden and extreme losses. The lack of long-term performance records also adds to the uncertainty.

Policy Shift Opens New Investment Options

In 2025, U.S. federal authorities ended previous warnings against including crypto in defined-contribution retirement plans. This change allowed plan providers to begin offering crypto investment options within 401(k)s and similar accounts.

Supporters of this shift argue that crypto can modernize retirement investing. They believe it offers diversification and the chance for high returns. Some financial firms also began marketing crypto options to attract younger investors.

However, Warren and several lawmakers remain unconvinced. They argue that exposing retirement funds to such an unpredictable asset could undo years of built-up protections. Critics worry this may create a false sense of security among savers.

Lawmakers and Advocates Voice Caution

Other lawmakers and consumer advocacy groups have joined Warren in expressing concern. They believe that introducing crypto into retirement portfolios without strong regulatory standards could increase the risk of financial harm.

They also say most retirement savers do not have the tools or experience to evaluate such a new asset class. Warren added that crypto investments may be promoted without disclosing all risks, which puts ordinary investors at a disadvantage.

Several experts have called for new legislation to protect investors and maintain the long-standing safety of retirement savings systems. While some industry leaders support crypto’s potential, the debate over its place in retirement plans continues.

The post Elizabeth Warren Warns Crypto In Retirement Plans Is Too Risky appeared first on CoinCentral.

Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact service@support.mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

XRP Enters ‘Washout Zone,’ Then Targets $30, Crypto Analyst Says

XRP Enters ‘Washout Zone,’ Then Targets $30, Crypto Analyst Says

XRP has entered what Korean Certified Elliott Wave Analyst XForceGlobal (@XForceGlobal) calls a “washout” phase inside a broader Elliott Wave corrective structure
Share
NewsBTC2026/02/05 08:00
Republicans are 'very concerned about Texas' turning blue: GOP senator

Republicans are 'very concerned about Texas' turning blue: GOP senator

While Republicans in the U.S. House of Representatives have a razor-thin with just a four-seat advantage, their six-seat advantage in the U.S. Senate is seen as
Share
Alternet2026/02/05 08:38
Headwind Helps Best Wallet Token

Headwind Helps Best Wallet Token

The post Headwind Helps Best Wallet Token appeared on BitcoinEthereumNews.com. Google has announced the launch of a new open-source protocol called Agent Payments Protocol (AP2) in partnership with Coinbase, the Ethereum Foundation, and 60 other organizations. This allows AI agents to make payments on behalf of users using various methods such as real-time bank transfers, credit and debit cards, and, most importantly, stablecoins. Let’s explore in detail what this could mean for the broader cryptocurrency markets, and also highlight a presale crypto (Best Wallet Token) that could explode as a result of this development. Google’s Push for Stablecoins Agent Payments Protocol (AP2) uses digital contracts known as ‘Intent Mandates’ and ‘Verifiable Credentials’ to ensure that AI agents undertake only those payments authorized by the user. Mandates, by the way, are cryptographically signed, tamper-proof digital contracts that act as verifiable proof of a user’s instruction. For example, let’s say you instruct an AI agent to never spend more than $200 in a single transaction. This instruction is written into an Intent Mandate, which serves as a digital contract. Now, whenever the AI agent tries to make a payment, it must present this mandate as proof of authorization, which will then be verified via the AP2 protocol. Alongside this, Google has also launched the A2A x402 extension to accelerate support for the Web3 ecosystem. This production-ready solution enables agent-based crypto payments and will help reshape the growth of cryptocurrency integration within the AP2 protocol. Google’s inclusion of stablecoins in AP2 is a massive vote of confidence in dollar-pegged cryptocurrencies and a huge step toward making them a mainstream payment option. This widens stablecoin usage beyond trading and speculation, positioning them at the center of the consumption economy. The recent enactment of the GENIUS Act in the U.S. gives stablecoins more structure and legal support. Imagine paying for things like data crawls, per-task…
Share
BitcoinEthereumNews2025/09/18 01:27