U.S. Representative Maxine Waters, the ranking Democrat on the House Financial Services Committee, has submitted an 11-page comment letter to the Department of Labor, urging the withdrawal of a proposal that would allow alternative investments, including cryptocurrency, in 401(k) retirement accounts. The proposal, issued in March, implements President Trump's executive order to expand retirement savings options to assets like private equity and digital assets. Waters argues that exposing retirement savers to the volatile and largely unregulated digital asset market is premature, given that the SEC is still developing investor protections for cryptocurrencies. She notes that the digital asset ecosystem has seen collapses in trading activity, developer engagement, and user participation. Waters, who may return as committee chair if Democrats win the House majority in November, emphasizes that the proposal would put everyday Americans at risk. The Labor Department has not yet finalized the rule.

Key facts

• Waters filed an 11-page comment letter opposing the Labor Department's crypto-in-401(k) proposal.
• The proposal would allow alternative investments like crypto, private equity, and real estate.
• Waters argues the digital asset market lacks federal oversight and is too volatile.
• She may regain the House Financial Services Committee chair if Democrats win in November.
• The Labor Department has not yet finalized the proposed rule.