Bitwise chief investment officer Matt Hougan has criticized the notion that Bitcoin should be excluded from 401(k) plans due to its volatility, claiming that some stocks experience even larger fluctuations.

In conjunction with Hougan’s statements, US Senator Elizabeth Warren is pressing the SEC for clarity on how it plans to manage risks associated with including cryptocurrencies in these retirement accounts.

In August of last year, US President Donald Trump signed an executive order that directed the Labor Department to reassess constraints on alternative assets within defined-contribution plans, paving the way for the potential inclusion of cryptocurrencies in 401(k) plans.

During an interview with Investopedia Express Live, Hougan described previous attempts to hinder Bitcoin investments as “ridiculous,” noting that, while volatility exists, Bitcoin is actually less volatile than stocks like Nvidia over the past year.

“This is just another asset. Does it go up and down? Absolutely. Is there risk in it? Absolutely. But it’s actually less volatile over the last year than Nvidia stock, and you don’t see any rules about banning 401(k) providers from offering Nvidia stock.”
“C’est juste un autre actif. Est-ce qu’il monte et descend ? Absolument. Y a-t-il un risque ? Absolument. Mais il est en fait moins volatile au cours de la dernière année que l’action Nvidia, et vous ne voyez pas de règles interdisant aux fournisseurs de 401(k) d’offrir des actions Nvidia.”

Shares in Nvidia have seen a significant price swing from a low of about $94.31 in April 2025 to a high exceeding $207 in October.

In contrast, Bitcoin experienced a fluctuation between $76,000 and $126,080 within the same timeframe.

Warren has raised concerns that incorporating crypto into retirement plans could expose participants to bigger risks and higher fees, signaling a call to action for the SEC to address these issues clearly.

Furthermore, the Department of Labor’s Employee Benefits Security Administration has adopted a neutral stance on the potential for cryptocurrencies in 401(k) plans, having recently overturned a prior directive that discouraged such practices.

Related: Crypto in US 401(k) retirement plans may drive Bitcoin to $200K in 2025

Hougan believes that while it remains uncertain if 401(k) providers will certainly invest in crypto by 2026, it is a likely outcome and will become a normalized practice eventually.

“These are very slow-moving institutions, but we’re moving in that direction, and eventually it’ll be normalized like other assets, which is how it should be.”
“Ce sont des institutions qui évoluent très lentement, mais nous avançons dans cette direction, et finalement cela sera normalisé comme d’autres actifs, ce qui est la manière dont cela devrait être.”