Bitwise Chief Investment Officer Matt Hougan is pushing back hard against renewed claims that Bitcoin is simply too risky to belong in retirement accounts.
He called attempts to keep Bitcoin out of 401(k) plans “ridiculous,” arguing that they don’t line up with how risk is treated elsewhere in the financial system.
Hougan made the remarks during an interview on Investopedia Express Live, the same day Senator Elizabeth Warren urged the Securities and Exchange Commission to explain how it would protect retirement savers if cryptocurrencies are allowed into defined-contribution plans.
The timing highlights a widening gap between crypto industry leaders and policymakers over a central question: are Bitcoin’s price swings really a dealbreaker for long-term retirement investing?
“Less Volatile Than Nvidia”
At the heart of Hougan’s argument is a comparison he says critics tend to ignore.
Over the past year, Bitcoin has been less volatile than Nvidia, one of the most popular stocks in U.S. retirement portfolios.
Nvidia shares dropped to around $94 in April 2025 before climbing above $207 by October, a gain of roughly 120%. Bitcoin, meanwhile, traded between about $76,000 and $126,080 over the same period — a swing closer to 65%.
Despite that, Hougan pointed out, no one is calling for Nvidia to be banned from 401(k) plans.
“This is just another asset,” Hougan said. While he acknowledged that Bitcoin carries real risk, he argued that those risks are often exaggerated when compared with well-known stocks.
His comments challenge the long-standing narrative that volatility alone should automatically disqualify crypto from retirement accounts.
A Shifting Regulatory Landscape
The debate has picked up momentum following recent regulatory changes in the U.S.
Last August, President Trump signed an executive order directing the Department of Labor to reconsider restrictions on alternative assets in defined-contribution plans — reopening the door for cryptocurrencies to be included in 401(k)s.
Soon after, the Labor Department’s Employee Benefits Security Administration withdrew its 2022 guidance that urged plan fiduciaries to be extremely cautious about crypto, adopting a more neutral stance instead.
Bitcoin in 401(k)s Is Still Rare
Even with those changes, Bitcoin access in retirement plans remains limited.
Most workers can only gain exposure through self-directed brokerage accounts, where the responsibility and risk fall squarely on the individual. Only a handful of providers, including Fidelity and ForUsAll, currently offer Bitcoin exposure, often through spot Bitcoin ETFs. Major firms like Vanguard have chosen not to participate.
Senator Warren remains one of the strongest critics of expanding crypto’s role in retirement savings.
In an open letter published Monday, she warned that allowing crypto into 401(k)s could expose workers to high fees, market manipulation, and sudden price drops that threaten retirement security. For many Americans, she argued, retirement accounts are a safety net — not a place for speculative bets.
Warren has asked SEC Chair Paul Atkins to explain how the agency evaluates crypto volatility and whether it is investigating manipulation in digital asset markets, requesting answers by January 27.
Looking Ahead
Hougan agrees that Bitcoin won’t become a standard 401(k) option overnight.
He noted that retirement plan providers move slowly, constrained by fiduciary duties and regulatory uncertainty. Still, he believes Bitcoin exposure will become more common over time.
According to Hougan, growing institutional participation — especially through spot Bitcoin ETFs — has already helped smooth out some of Bitcoin’s extreme volatility compared with earlier cycles.
While Bitcoin’s price history still includes deeper drawdowns than broad market indices like the S&P 500, which typically sees annualized volatility of 15% to 20%, Hougan argues the conversation needs more nuance than simple fear of price swings.
