Key Takeaways
SEC Chair Paul Atkins said President Trump’s executive order to allow crypto and private equity in 401(k) plans addresses a structural gap in US retirement policy.
The SEC is updating custody regulations and aims to provide more regulatory clarity for crypto innovation in the U.S.
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SEC Chair Paul Atkins reiterated support for President Trump’s executive order opening 401(k)s to crypto and private equity, saying it will give retirement savers more options and could level the playing field with pensions.
“Because the marketplace has changed a lot in the past few decades, where the number of public companies now is half of what it was,” said Atkins on ‘Mornings with Maria’ this morning. “And the private market has really grown tremendously, because there’s a lot of capital out there looking for deals to invest in.”
According to Atkins, the shift has left individual investors at a disadvantage, with large pension funds and university endowments being able to participate in private deals. At the same time, 401(k) participants remain locked out.
Allowing access to these markets, he said, could help close that gap.
“It’s not really great to have a situation where large endowments and pension funds, like state pension funds and whatnot, can be diversified in the public and private markets, but 401ks cannot,” he said.
However, Atkins warned that the policy should not be rolled out without safeguards. He stressed the need for “proper guardrails” to ensure investors understand the risks.
The executive order assigns the Department of Labor and the SEC to develop a regulatory framework to implement the changes, aiming to strike a balance between increased access and protections for retirement savers.
Project Crypto
Discussing Project Crypto, a newly launched initiative aimed at reforming securities rules for crypto assets, Atkins said the SEC is mobilizing all of its divisions, from Corporation Finance to Investment Management, to bring digital assets under clear, workable rules.
Atkins said that one of the top priorities now is overhauling custody regulations to fit crypto assets and blockchain infrastructure.
“We are looking at the rules that have been around for now, you know, 90 years or so, and make sure that they are adaptable and adapted to the modern world and to this new technology. So that will have effects on broker-dealers and asset managers, and investment advisors,” he explained.
The regulatory environment for crypto innovation is changing, according to Atkins.
“For too long now, there was a lot of guesswork, and there was a very, I would say, hostile environment as far as people trying to innovate,” he said. “Our goal is to give clarity and certainty.”
“It will be undergirded by whatever comes out of Congress, but I believe that we have the authority to move forward in these areas and provide that certainty and clarity for people,” he added.
When asked about the outlook for crypto payments, Atkins pointed to how real-time settlement systems could transform the financial sector.
He said faster settlement reduces the period in which trades remain exposed to operational or market risk, lowering the chance of disruptions and adding transparency to the process.
“That’s what the blockchain offers,” Atkins said. “That will deliver huge benefits to the marketplace that we probably can’t even calculate right now.”
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