Senator Proposes Bill to Enable Crypto Investments in Retirement Funds

Highlights:

• Senator Tuberville’s Financial Freedom Act aims to allow crypto investments in retirement funds.
• Tuberville criticizes Biden’s administration while praising Trump as the “Crypto President.”
• Senator Lummis pushes for a strategic Bitcoin reserve to strengthen U.S. financial stability.

U.S. Senator Tommy Tuberville announced on April 1 that he will introduce the Financial Freedom Act on April 2. The bill would allow families and individuals to invest their retirement funds in cryptocurrency. Speaking to Fox Business Live, he emphasized that America is the “country of freedom.” He also criticized the previous administration under Joe Biden for imposing excessive regulations on the American people.

America is the country of FREEDOM, but under Joe Biden, the federal government tried to control how Americans invest their money.

President Trump is the Crypto President.

That’s why I am re-introducing the Financial Freedom Act to give AMERICANS the freedom to invest their… pic.twitter.com/28T7ZiRfPK

— Coach Tommy Tuberville (@SenTuberville) March 31, 2025

Tuberville Reintroduces Financial Freedom Act

​Senator Tommy Tuberville has reintroduced the Financial Freedom Act. This bill aims to allow Americans to invest their retirement funds in cryptocurrencies like Bitcoin. The legislation seeks to reverse Department of Labor (DOL) guidance that limits investment options in self-directed 401(k) accounts. Senator Tuberville believes that individuals should have the freedom to choose how to invest their money without government interference. 

Senator Tuberville praised the Trump administration, calling him the “Crypto President.” He said, “We want to help him with this,” noting that it would benefit everyone. He also criticized the Biden administration, stating they showed no interest in crypto. Tuberville added that the previous government tried to control how Americans invest their money.

Many view cryptocurrencies as too risky for retirement funds. However, Bitcoin’s long-term performance tells a different story. Last year, Bitcoin appreciated 120%, outperforming most traditional financial assets. Still, some crypto assets have not performed as well.

Experts Divided on Including Crypto in Retirement Portfolios

Financial experts remain divided on the benefits of adding crypto to retirement portfolios. Ivory Johnson, a certified financial planner and founder of Delancey Wealth Management, supports including cryptocurrencies as “a non-correlated alternative asset class.” He told CNBC that investors allocate between 2% and 8% of their portfolios to cryptocurrencies.

However, other financial experts advise caution. Amy Arnott, a chartered financial analyst and portfolio strategist at Morningstar Research Services, warns that adding crypto to retirement plans could “significantly increase the risk.” She says it might lead to “large losses at the wrong time,” which is especially concerning for those nearing retirement.

Lummis Advocates for Strategic Bitcoin Reserve

At the federal level, U.S. Senator Cynthia Lummis (R-WY) is working toward creating a strategic Bitcoin reserve. Her proposed Bitcoin Act seeks to improve America’s long-term financial stability. The bill would require the government to acquire and hold significant Bitcoin reserves over time.

Reasons to pass the BITCOIN Act and buy, baby, buy:

1) The Bitcoin Act will help America get our debt under control;
2) Only one nation will have the juice to own enough Bitcoin to underpin it's currency as the world's reserve $.

The clock and next block are ticking: Let's Go! https://t.co/9JxaTLbGeL

— Cynthia Lummis (@CynthiaMLummis) March 31, 2025

In a recent social media post, Lummis discussed the importance of the Bitcoin Act. She argued that controlling a strategic Bitcoin reserve would give the U.S. a powerful financial tool. This is especially crucial as rising national debt threatens the country’s long-term economic stability.

Notably, the comment follows a recent warning from BlackRock’s CEO, Larry Fink. He cautioned that the U.S. dollar is at risk of losing its status as the world’s reserve currency. Fink suggested that Bitcoin could potentially replace the dollar in this role.