401(k) and XRP Connection: Crypto Advocates Celebrate as Lawmakers Push SEC
First Ledger, a prominent decentralized exchange that uses the XRPL, has referred to 401(k) and XRP as essentially the same thing. The statement was made as American lawmakers pushed the SEC to carry out the executive order issued by President Donald Trump. The goal of the ruling is to allow cryptocurrency to enter the $12 trillion 401(k) retirement market.
In particular, nine lawmakers wrote to SEC Chair Paul Atkins, including important House committee chairs Ann Wagner and French Hill. They requested him to facilitate the inclusion of alternative assets, such as cryptocurrencies, in retirement plans. They requested that some investment regulations be loosened by the SEC. This would enable crypto assets like Bitcoin, Ethereum, and XRP to diversify the portfolios of the 90 million Americans who are saving for retirement.
Crypto Market Could Skyrocket With Tiny 1–2% 401(k) Exposure
An estimated $120 billion to $240 billion in inflows might come from a 1% to 2% cryptocurrency allocation across the $12 trillion in 401(k) plans, according to analysts. Since January 2024, Bitcoin ETFs have drawn $57.3 billion, to put this into perspective. In that period, the global cryptocurrency market expanded from $1.65 trillion to nearly $4.17 trillion, while the price of Bitcoin soared from $45,000 to $124,457. Alternatively said, the market was compounded by the $60 billion from Bitcoin ETFs and other investors. This has, predictably, sparked debate on the possible effects of 401(k) plans allocating even a small 1% for cryptocurrency.
XRP Eyes Massive 401(k) Inflows Following Trump’s Policy Shift
According to First Ledger, the similarity between 401(k)s and XRP demonstrates that both aim to increase long-term wealth and facilitate more effective asset transfer. XRP is pitching itself as a global bridge asset for institutional adoption and cross-border settlement, much like how 401(k) plans seek to increase retirement savings over decades. Paul Barron and other market analysts have said that Trump’s change in policy might have a revolutionary effect on XRP. Barron pointed out that cryptocurrency exchange-traded funds (ETFs), which are already awaiting approval for XRP, would probably receive the first allocation of 401(k) capital.
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