Bitwise CIO Slams BTC 401(k) Limits as ‘Ridiculous’ Amid Warren’s SEC Pressure
Matt Hougan, the Chief Investment Officer of Bitwise, has strongly criticised constraints on investing in BTC in 401(k) retirement plans, them “ridiculous” and pointing out that diverse assets are treated diversely when it comes to volatility.
During an with Investopedia Express Live on Monday, he made these statements. This was at the identical time that U.S. Senator Elizabeth Warren was looking into the possible risks of using crypto for retirement savings.
Hougan Defends BTC’s Place
Hougan BTC should be viewn as “just another asset,” with the dangers that come with it, but it has been less volatile than certain well-known stocks over the past few months. He said that BTC’s price rose and fell by about 65% between April and October 2025, from $76,000 to $126,080.
Nvidia shares, on the other hand, went up and down by 120%, from about $94.31 to more than $207 in the identical time period.
“This is just another thing of value. Does it go up and down? Yes, for sure. Is there a risk? Yes, for sure. “But it’s actually less volatile than over the past year, and there are no rules that say 401(k) providers can’t offer Nvidia stock,” Hougan said.
He called prior attempts by companies like Vanguard to stop people from investing in BTC, as well as regulatory recommendations that discouraged its use in 401(k)s, wrong.
Hougan said that retirement plan providers may not begin using it widely right away in 2026 because they are cautious and have fiduciary duties. Still, he thinks it will become the norm over time. “These institutions move very sluggishly, but we’re moving in that direction. Eventually, it will be normal like other assets, which is how it should be,” he said.
Warren Presses SEC to Lower Risk
Senator Elizabeth Warren issued an open letter to on the identical day, asking for more information on how the agency intended to protect retirement savers if cryptocurrencies are added to 401(k) programs. Warren stressed that these accounts are not places to make risky investments; for most Americans, they are a “lifeline to retirement security.”
“For most Americans, their 401(k) is not a place to take financial risks; it’s a lifeline to a secure retirement. Warren remarked, “Letting crypto into American retirement accounts makes it simple for workers and families to lose a lot of money.”
She was worried about the extreme volatility of , the possibility of market manipulation, the higher fees associated with alternative investments, and the lack of standardised valuation methods.
Warren asked for answers by January 27 on how the SEC considers price swings in valuations, investigates manipulative behaviour in markets, and plans to provide individual investors with instructional materials.
