Maxine Waters, the top Democrat on the House Financial Services Committee, is calling on the Department of Labor to drop its proposal involving alternative investments.

Waters, who could soon reclaim the committee chair if Democrats win in November, opposes a plan that would open 401(k) retirement accounts to assets such as cryptocurrencies.

The proposal, introduced in March, follows an executive order from President Donald Trump aimed at expanding retirement investment options to include private equity, private credit, real estate, commodities, and digital assets. Waters responded this week with an 11-page letter urging the department to withdraw the plan.

She argued that endorsing digital assets for retirement savings is premature, noting that the Securities and Exchange Commission is still working to establish proper investor protections. According to Waters, the risks extend beyond price volatility, pointing to broader weaknesses in the crypto sector, including declining trading activity, shrinking developer interest, and reduced user engagement.

Waters, who previously chaired the committee, could return to the role if Democrats regain control of the House. Betting platform Kalshi currently places the odds of that outcome at 82%. While the committee does not directly regulate 401(k) plans, it oversees the SEC, which governs investment markets.

In her letter to Acting Labor Secretary Keith Sonderling, Waters warned that the proposal could expose retirement savers to a largely unregulated market that has already caused significant investor losses.

The plan stems from an executive order issued by Trump last August, directing agencies to give individuals access to alternative investments within their retirement plans for potential growth and diversification.Maxine Waters, the top Democrat on the House Financial Services Committee, is calling on the Department of Labor to drop its proposal involving alternative investments.

Waters, who could soon reclaim the committee chair if Democrats win in November, opposes a plan that would open 401(k) retirement accounts to assets such as cryptocurrencies.

The proposal, introduced in March, follows an executive order from President Donald Trump aimed at expanding retirement investment options to include private equity, private credit, real estate, commodities, and digital assets. Waters responded this week with an 11-page letter urging the department to withdraw the plan.

She argued that endorsing digital assets for retirement savings is premature, noting that the Securities and Exchange Commission is still working to establish proper investor protections. According to Waters, the risks extend beyond price volatility, pointing to broader weaknesses in the crypto sector, including declining trading activity, shrinking developer interest, and reduced user engagement.

Waters, who previously chaired the committee, could return to the role if Democrats regain control of the House. Betting platform Kalshi currently places the odds of that outcome at 82%. While the committee does not directly regulate 401(k) plans, it oversees the SEC, which governs investment markets.

In her letter to Acting Labor Secretary Keith Sonderling, Waters warned that the proposal could expose retirement savers to a largely unregulated market that has already caused significant investor losses.

The plan stems from an executive order issued by Trump last August, directing agencies to give individuals access to alternative investments within their retirement plans for potential growth and diversification.