SEC Chair Paul Atkins on Wednesday opened the door to crypto in $12.5 trillion worth of 401(k) retirement accounts but simultaneously issued new guidance on the synthetic tokenized stock market, requiring issuer approval for legitimate equity tokens.
The 401(k) Crypto Green Light
Atkins told CNBC the “time is right” to allow crypto exposure in 401(k) plans, noting millions of Americans already hold digital assets through professionally managed pension funds.
The structure matters. In pension funds, professional managers decide which assets make it into portfolios.
The SEC wants that same framework for 401(k)s—trustees and fund managers control what gets included, not individual account holders making their own picks.
Atkins said the agency is starting with private securities and private equity, which already appear in managed retirement accounts.
Crypto follows the same path as an alternative asset managed by professionals rather than individuals.
The Tokenized Stock Crackdown
The SEC also released guidance that exposes most tokenized stock products as fake equity.
The agency separated tokenized stocks into two categories.
First, issuer-sponsored tokens where the company puts blockchain records into its official shareholder register—these represent real ownership.
Second, everything else created by third parties without company involvement—these are synthetic products.
That second category doesn’t give investors actual shares.
Instead, they get derivatives or custodial IOUs that track stock prices but provide no voting rights, no shareholder information, and no direct claim on the company.
The timing follows Robinhood’s (NASDAQ:HOOD) recent European launch of tokenized OpenAI “equity,” which OpenAI quickly rejected.
Why This Matters Now
The SEC is drawing a line: Companies must approve tokenized versions of their stock, or the product gets treated as a derivative that requires full regulatory disclosure.
For crypto in 401(k)s, the shift unlocks access for millions of retail investors who couldn’t previously hold digital assets in tax-advantaged retirement accounts.
The move puts Bitcoin (CRYPTO: BTC) and other cryptocurrencies alongside stocks and bonds as legitimate long-term allocations.
The volatility play sits with crypto infrastructure.
If 401(k) platforms start offering digital assets, companies like Coinbase Global Inc. (NASDAQ:COIN) processes those trades and capture fees from a massive new customer base.
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