Republican Consultant Troy Downing plans to introduce a invoice geared toward making President Donald Trump's Bitcoin and Crypto 410(okay) govt order federal legislation. A consultant for the lawmaker confirmed that Downing plans to introduce the invoice on October twenty first.
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- President Donald Trump signed an govt order on August 7, 2025, permitting cryptocurrencies and different “various belongings” into People' retirement plans. The order was dubbed the “401k Cryptocurrency Trump.”
- Along with cryptocurrencies, the order additionally opens retirement accounts to put money into actual property and personal fairness.
- If Downing's invoice turns into federal legislation, it might unlock $12 trillion of People' financial savings flowing into the cryptocurrency market.
- Bitcoin treasury firm shares have been usually promoted as a option to not directly make investments cash out of your 401(okay) account in Bitcoin. If this invoice is handed, the place of economic corporations could also be weakened.
Who’s Troy Downing?
Troy Downing will characterize Montana State in 2025. Earlier than becoming a member of Congress, Downing labored as a securities and insurance coverage auditor in Montana. Along with that, he served within the Air Pressure, based a number of enterprise ventures, and labored as a researcher and educator at New York College.
As a lawmaker, he advocated rolling again Biden-era crypto laws in favor of a extra industry-friendly method. The 401(okay) invoice can be his first effort to champion cryptocurrency regulation within the Home. It's value saying that earlier than Mr. Downing introduces different payments that don’t have anything to do with cryptocurrencies. His efforts acquired bipartisan assist within the Home. Nonetheless, there isn’t a assure that the Retirement Funding Alternative Act will obtain the identical degree of assist.
“We have to make it possible for innovation is occurring right here in america. We want to verify we now have an affordable regulatory framework so that individuals need to develop issues right here in america.”
This week in Cryptocurrency Week, @FinancialCmte and @HouseGOP are stepping up… pic.twitter.com/GsX0P1qp9H
— Rep. Troy Downing (@RepTroyDowning) July 15, 2025
Mr. Downing advocated for the GENIUS and CLARITY Acts throughout White Home Crypto Week, which resulted within the passage of the GENIUS Act. He emphasised the significance of fostering U.S. innovation by means of a “cheap regulatory framework.”
Though Downing advocates for deregulation and opposes the prohibitive method to cryptocurrencies of the Gary Gensler period, he’s conscious of the attainable dangers. In March, he stated throughout a tv look:
“We have to have an affordable sideboard so we don't blow up like FTX or Sam Bankman Freed.”
How to decide on retirement investments
Downing's invoice is named the Retirement Funding Decisions Act. He stated the invoice would “considerably enhance” the monetary safety of People by giving them the chance to make use of their retirement financial savings accounts to put money into various belongings.
Historically, retirement accounts have been used to put money into bonds, shares, and mutual funds. President Trump's govt order permits tax-advantaged 401(okay) funding plans to incorporate cryptocurrencies, personal fairness, and actual property.
President Trump's govt order ordered the Securities and Trade Fee, Division of Labor, and Division of the Treasury to regulate guidelines to permit staff to put money into cryptocurrencies, actual property, and personal fairness by means of their pension funds. The title Downing Invoice displays the rise in funding choices out there. It’s estimated that $12 trillion of funds have been locked out of investing in cryptocurrencies.
The “401(okay) Cryptocurrency Trump” is seen as a option to legitimize cryptocurrencies within the eyes of the broader public, make them extra accessible, and produce extra stability to the market.
Federal authorized standing would elevate President Trump's order and make it a everlasting norm nationwide.
learn extra: Trump 401k Cryptocurrency: What Trump Govt Order has in retailer for cryptocurrencies
Competitors from Bitcoin ETFs and Bitcoin Treasury Corporations
The adoption of the Retirement Funding Decisions Act might pose a brand new menace to the already weakened enterprise of Bitcoin treasury corporations. One of many promoting factors of Bitcoin treasury corporations is that individuals can use their retirement accounts to not directly put money into the Bitcoin held by these corporations. It’s attainable to put money into the shares of those corporations and is believed to supply larger yields than Bitcoin (or different cryptocurrencies) themselves. For this to occur, the overall worth of an organization's inventory should exceed the overall worth of Bitcoin.
Metaplanet buying and selling under NAV.
TBH, I believed it could take longer. Metaplanet is a best-in-class worldwide BTC DAT and the 4th largest BTC treasury holder.GOAT, $MSTR remains to be buying and selling at c. 1.4x mNAV
— Coronary heart (@shunqu22) October 14, 2025
Many of those corporations fail to ship on their guarantees. One of many newest examples is Metaplanet, the fourth largest Bitcoin holder. The corporate's inventory value has fallen 97% since its peak. On October 14, 2025, the overall worth of the corporate's inventory fell under the quantity of Bitcoin it held, making the corporate's inventory much less worthwhile than direct funding in Bitcoin.
learn extra: Metaplanet inventory flashes dying cross as key indicators fall
Such circumstances will proceed to snowball from the second half of summer time 2025. Sequans and Nakamoto are additionally notable examples of Bitcoin authorities bonds, with their inventory costs dropping 98% and 80%, respectively.
Bitcoin ETFs have grow to be a serious competitor for Bitcoin treasury corporations within the TradFi area that seeks to leverage Bitcoin. In an try to elucidate why Bitcoin Treasuries are higher than Bitcoin ETFs, Jack Mullers, CEO of Bitcoin Treasuries at Twenty One Capital, whose inventory value has fallen almost 60%, stated:
“What makes us uniquely completely different from ETFs is that we’re an working firm, so we have been based as a Bitcoin enterprise with the core purpose of accelerating what we name Bitcoins per share. Our purpose is to be the easiest way for capital markets to take part on this Bitcoin story.”
Bitcoin treasury corporations might lose a big portion of their buyers if $12 trillion in capital is unlocked for 401(okay) funding plans, as many individuals could have the chance to speculate immediately in Bitcoin. On condition that these corporations' share costs are falling, they might want to supply extra perks to maintain buyers loyal.
You might also like: Coinbase researchers say crypto treasury might consolidate as competitors will increase
