Senators Bernie Sanders and Elizabeth Warren are asking Trump’s Department of Labor to withdraw a law that would open America’s retirement account to Bitcoin and other cryptocurrencies – which lawmakers say puts the financial future of workers at risk while lining the pockets of President Trump and his family.
On 14 pages letter sent Monday to Deputy Labor Secretary Keith Sonderling, Sanders (I-VT) and Warren (D-MA) joined House Education and Workforce Committee member Rep. Bobby Scott (D-VA) to criticize the Labor Department rule. float in March.
The law would allow 401(k) plans to offer non-convertible assets – including cryptocurrency, private equity, and private equity – as long as trustees can demonstrate that they have tested the required assets before making the offer.
“The proposed rule is harmful to American workers and inconsistent with the laws, purposes of DRM, existing laws, and case law,” the letter reads.
What the law would do
The proposal is based on the executive order that President Trump signed last August, and to improve the Department of Labor retrace his steps to other things in the retirement plan. Under current law, 401(k) plan administrators have limited “discretion” — a requirement based on the Employee Retirement Income Security Act (ERISA) of 1974 and reinforced by Supreme Court precedent.
Democrats argue that the new law will turn this standard on its head. Instead of requiring believers to show diligence, the law is only presumptive – as long as the believer follows the established process.
The change, lawmakers say, contradicts years of legislation and exposes $14.2 trillion in American 401(k) savings to products with variable rates and limited oversight.
The Financial Industry Regulatory Authority (FINRA) has warned that cryptocurrencies “experience high volatility compared to the rest of the economy” and that “the risk of losing all your money is high.” The FBI report more than $11 billion in losses from cryptocurrency fraud in 2025 – among the largest losses from any cyber-related crime group.
Trump-of-interest conflict
Democratic lawmakers pushed ahead with the retirement plan, sparking a bitter disagreement. Trump’s eldest children oversee the family’s crypto business, and the venture has raised $5 billion for the Trump family following the September launch of their digital currency. according to in the Wall Street Journal.
The family’s crypto portfolio includes WLFI and World Liberty Financial’s WLFI and USD1 tokens, as well as Trump’s meme currency – which peaked at $75 per token at Trump’s inauguration in January 2025 before falling to $2.
“The policy changes described above expand opportunities for President Trump and his family to benefit taxpayers, workers, and retirees,” the letter said.
The consumer advocacy group Americans for Financial Reform echoed those concerns.
“Opening up 401(k)s to these assets could turn retirement savings into a Ponzi scheme that drives companies to look for new investments,” he said Oscar Valdés Viera, the organization’s policy analyst.
The letter also cited poverty statistics: more than 22.8% of the elderly in the United States live in poverty, compared to 5.1% in Denmark, 5.8% in France, and 12.6% in Germany – emphasizing retirees who cannot take large losses.
Protection of administrators
The Trump administration has implemented the law as an expansion of employee choice.
“The days of the department picking winners and losers are over,” Labor Secretary Sonderling wrote he said in a sentence. “Our law makes it clear that regulators must evaluate all potential acquisitions in a prudent manner.”
Treasury Secretary Scott Bessent added his support, calling the bill “another step toward ushering in the ‘Golden Age’ of President Trump.”
