Key Takeaways

• SEC Chair Paul Atkins supports President Trump’s executive order to allow crypto and private equity in 401(k) plans, highlighting a structural gap in U.S. retirement policy.
• The SEC is updating custody regulations to provide more regulatory clarity for crypto innovation in the U.S.

SEC Chair Paul Atkins reiterated his support for President Trump’s executive order that opens 401(k)s to crypto and private equity, stating it will offer retirement savers more options and potentially 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. “And the private market has really grown tremendously, because there’s a lot of capital out there looking for deals to invest in.”

Atkins noted that this shift has left individual investors at a disadvantage compared to larger pension funds and university endowments that participate in private deals, while 401(k) participants remain excluded.

He emphasized that allowing access to these markets could help mitigate this disparity.

> “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 stated.

However, Atkins cautioned against implementing this policy without safeguards, emphasizing the need for “proper guardrails” to ensure investors comprehend the associated risks.

The executive order directs the Department of Labor and the SEC to develop a regulatory framework aimed at balancing increased access with protections for retirement savers.

Project Crypto

In discussing Project Crypto, a newly launched initiative to reform securities rules for crypto assets, Atkins mentioned that the SEC is mobilizing all its divisions—from Corporation Finance to Investment Management—to bring digital assets under clear, workable regulations.

He explained that one of their main priorities is overhauling custody regulations to accommodate 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 they are adaptable to the modern world and to this new technology. So that will affect broker-dealers, asset managers, and investment advisors,” he clarified.

Atkins asserted that the regulatory environment for crypto innovation is evolving.

> “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 future of crypto payments, Atkins highlighted how real-time settlement systems could revolutionize the financial sector.

He noted that faster settlement reduces the time during which trades are exposed to operational or market risks, thus lowering the chances of disruptions and increasing transparency throughout the process.

> “That’s what the blockchain offers,” Atkins remarked. “That will deliver huge benefits to the marketplace that we probably can’t even calculate right now.”