Bitwise chief investment officer Matt Hougan has challenged claims that Bitcoin should be excluded from retirement accounts due to volatility.
Hougan argued that several widely held stocks experience larger price swings than Bitcoin without facing similar restrictions.
His comments came as U.S. Senator Elizabeth Warren pressed regulators on the risks of allowing crypto in 401(k) plans.
Comparing Bitcoin Volatility With Stocks
Speaking during an interview, Hougan criticized decisions by asset managers and regulators to block Bitcoin access.
“This is just another asset. Does it go up and down? Absolutely. Is there risk in it? Absolutely. But it’s actually less volatile over the last year than Nvidia stock, and you don’t see any rules about banning 401(k) providers from offering Nvidia stock,” he said.
Nvidia shares fell to around $94 in April 2025 before surging above $207 by October, representing a 120% swing.
Over the same period, Bitcoin moved between roughly $76,000 and $126,080, equating to a 65% range.
Hougan said this comparison undermines arguments that volatility alone justifies excluding crypto from retirement portfolios.
Regulatory Debate Intensifies
Interest in crypto-enabled retirement plans has grown following an executive order signed by President Donald Trump last year.
The order instructed the Labor Department to reevaluate restrictions on alternative assets in defined-contribution plans.
That move opened the door for cryptocurrencies to be considered for inclusion in 401(k) offerings.
Warren, however, warned that crypto investments could expose retirement savers to excessive risk.
“For most Americans, their 401(k) represents a lifeline to retirement security rather than a playground for financial risk. Allowing crypto into American retirement accounts creates fertile ground for workers and families to lose big,” she said.
SEC Under Pressure To Respond
Warren has asked SEC Chair Paul Atkins to explain how the regulator evaluates crypto volatility in corporate holdings.
She also questioned whether the SEC has adequately assessed manipulation risks in crypto markets.
In addition, Warren wants the regulator to provide educational materials aimed at improving investor awareness.
Her letter set a deadline of Jan. 27 for a formal response from the SEC.
Gradual Path Toward Normalization
Earlier this year, the Department of Labor adopted a neutral stance on crypto in 401(k) plans.
The shift followed the rescinding of 2022 guidance that had discouraged retirement plan exposure to digital assets.
Hougan said adoption is unlikely to happen quickly due to the cautious nature of retirement plan providers.
“These are very slow-moving institutions, but we’re moving in that direction, and eventually it’ll be normalized like other assets, which is how it should be,” he added.
The debate highlights a broader struggle over how cryptocurrencies fit within traditional financial systems.
