Republican Congressman Troy Downing goes to introduce a invoice aimed toward making Donald Trump’s Bitcoin and Crypto 410(okay) government order into federal legislation. A consultant of the congressman confirmed that Downing goes to introduce the invoice on Oct. 21.
Abstract
- President Donald Trump signed an government order permitting crypto and different “various property” in People’ retirement plans on Aug. 7, 2025. The order was dubbed “401k crypto Trump.”
- On prime of crypto, the order opens retirement accounts for investing in actual property and personal fairness.
- If Downing’s invoice turns into federal legislation, it could take away locks for $12 trillion in People’ financial savings to circulation into the crypto market.
- Shares of Bitcoin treasury corporations had been typically promoted as the best way to speculate cash from 401(okay) accounts not directly in Bitcoin. If the invoice passes, it could weaken the place of treasury companies.
Who’s Troy Downing?
Troy Downing turned consultant for Montana in 2025. Previous to becoming a member of the Congress, Downing labored as a securities and insurance coverage auditor in Montana. On prime of that, he served within the Air Power, based a number of enterprise ventures, and labored as a researcher and educator at New York College.
As a congressman, he advocated for reversing Biden-era crypto regulation in favor of a extra industry-friendly strategy. The 401(okay) invoice will turn into his first effort at championing crypto regulation within the Home of Representatives. It’s value saying that earlier than Downing launched different payments, not related to crypto. His efforts discovered bipartisan assist within the Home. Nevertheless, there’s no assure that the Retirement Funding Selection Act will take pleasure in the identical stage of assist.
“We’d like to ensure innovation is going on right here in america of America. We’d like to ensure we’ve got cheap regulatory frameworks so that folks wish to develop issues in america.”
This crypto week, @FinancialCmte and @HouseGOP are working to cement… pic.twitter.com/GsX0P1qp9H
— Congressman Troy Downing (@RepTroyDowning) July 15, 2025
Downing advocated for the GENIUS and CLARITY acts through the White Home Crypto Week that resulted within the GENIUS Act passage. He emphasised the significance of fostering innovation within the U.S. by “cheap regulatory frameworks.”
Whereas Downing is pushing for looser regulation and opposes the Gary Gensler-era prohibitive strategy to crypto, he’s conscious of potential dangers. In March, he famous throughout his TV look:
“We have to have cheap sideboards to ensure we don’t have one other huge blow-up like we did with FTX and Sam Bankman-Fried.”
Retirement Funding Selection Act
Downing’s invoice known as the Retirement Funding Selection Act. In line with the congressman, the invoice would “supercharge” the monetary security of U.S. residents due to the chance to make use of retirement financial savings accounts for funding in various property.
Historically, retirement accounts had been used for funding in bonds, shares, and mutual funds. Trump’s government order allowed crypto, personal fairness, and actual property to be included in tax-advantaged 401(okay) funding plans.
Trump’s government order tasked the Securities and Trade Fee, the Labor Division, and the Treasury with adjusting their guidelines in order that staff might put money into crypto, actual property, or personal fairness by way of their pension funds. The Downing invoice’s identify displays the rise in obtainable funding choices. The cash beforehand locked out from investing in crypto is estimated at $12 trillion.
The “401(okay) crypto Trump” is seen as a way to legitimize crypto within the eyes of the broad public, make it extra obtainable, and convey extra stability to the market.
The federal legislation standing will elevate Trump’s order, making it a nationwide everlasting norm.
Learn extra: 401k crypto Trump: Right here’s what Trump government orders has in retailer for crypto
Competitors with Bitcoin ETFs and Bitcoin treasury corporations
Adoption of the Retirement Funding Selection Act could also be one other menace to the already weakening Bitcoin treasury companies’ enterprise. One of many promoting factors of Bitcoin treasury corporations is that they permit folks to make use of their retirement accounts to put money into Bitcoin held by these corporations not directly. It’s potential to put money into these companies’ shares, that are imagined to deliver larger yields than Bitcoin (or another cryptocurrency) itself. To take action, the corporate’s whole inventory worth ought to exceed its whole Bitcoin worth.
Metaplanet buying and selling beneath NAV.
TBH, I believed this was going to take longer. Metaplanet is the best-in-class worldwide BTC DAT and the 4th largest BTC treasury holder.The GOAT, $MSTR, nonetheless trades at c. 1.4x mNAV
— Sunqu (@Sunqu22) October 14, 2025
Many of those corporations fail to satisfy their promise. One of many newest examples is the 4th-biggest company Bitcoin holder, Metaplanet. Its inventory is 97% down from the height level. On Oct. 14, 2025, its whole inventory worth dropped beneath the corporate’s Bitcoin holdings, making its inventory much less worthwhile than the direct funding in Bitcoin.
Learn extra: Metaplanet inventory flashes a dying cross as key metric tumbles
Such instances proceed to snowball starting from the second half of the summer time of 2025. Sequans and Nakamoto are different notable examples of Bitcoin treasuries with shares down 98% and 80% respectively.
Bitcoin ETFs have been the primary competitor of Bitcoin treasury corporations within the TradFi sector, attempting to utilize Bitcoin. Jack Mallers, the CEO of a Twenty-One Capital Bitcoin treasury with inventory down practically 60%, tried to elucidate why Bitcoin treasuries are higher than Bitcoin ETFs, saying:
“What makes us uniquely completely different than an ETF is we’re an working firm, so we’re based as a Bitcoin enterprise with a core objective of accelerating what we name Bitcoin per share. Our objective is to be one of the simplest ways for the capital markets to take part on this Bitcoin story.”
If a $12 trillion capital will get unlocked for the 401(okay) funding plans, Bitcoin treasury corporations could lose an enormous portion of traders, as many individuals would have a possibility to put money into Bitcoin straight. Given the falling inventory costs of those corporations, they should provide extra advantages to maintain traders loyal.
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