Crypto in Retirement Plans and Debanking: Regulatory Tensions Escalate in the US

Warren Warns of Crypto Risks in Retirement Planning

Democratic US Senator Elizabeth Warren is sharply criticizing a new policy development in the United States that allows cryptocurrencies to be integrated into so-called 401(k) retirement plans. The Senator sees this as a dangerous experiment with the retirement security of millions of Americans ^[1].

401(k) plans represent the most important form of private retirement savings in the US and are comparable to employer-sponsored pension systems. Employees invest there with tax advantages in assets such as stocks or ETFs, often supplemented by employer contributions. For numerous US citizens, this plan forms the central financial security in retirement ^[1].

"For most Americans, their 401(k) plan is an important safeguard for retirement and not a playground for financial risks," Warren stated on the platform X. She warned that an Executive Order by Trump "creates fertile ground for workers and families to lose a lot" ^[1].

Reversal of Agency Warnings

Just a few years ago, the US Department of Labor explicitly warned against including cryptocurrencies in retirement products. The justification: excessive volatility, lack of transparency, and insufficient historical data. In 2025, however, these warnings were surprisingly withdrawn ^[1].

Warren, who has been a prominent critic of the crypto industry for years, once described Bitcoin developers as "a shadowy, anonymous group of super-coders." Before her last reelection, she even campaigned on "building an anti-crypto army" ^[1].

Proponents of digital currencies, however, argue for more modern savings opportunities and improved diversification. Critics like Warren fear that decades-established protective mechanisms for retirement savings could be undermined ^[1].

Trump Announces Lawsuit Against JPMorgan

Parallel to the discussions about retirement planning, tensions are escalating around so-called debanking. President Donald Trump announced that he will sue JPMorgan Chase within the next two weeks over allegedly unlawful account closures ^[2].

"I will sue JPMorgan Chase because they incorrectly and inappropriately debanked me after the January 6th protest," Trump declared in a social media post ^[2].

In August, Trump signed an Executive Order requiring banks to ensure they do not deny customers access to financial services based on religious or political beliefs—a practice known as debanking ^[2].

Trump claims to have personally been affected by discrimination from banks after his first term in office, with both JPMorgan Chase and Bank of America rejecting his deposits. JPMorgan stated at the time that it does not close accounts for political reasons ^[2].

Trump Family Embraces Crypto Solutions

Following the alleged problems with traditional banks, the Trump family intensified its engagement in the crypto sector. "We got into crypto because we were debanked," explained Donald Trump Jr. in a Fox News interview. "We had to develop solutions," he added, describing crypto as the most efficient way and "absolutely the future of banking" ^[2].

The Trump-backed platform World Liberty Financial, which is based on Ethereum and offers lending and borrowing services, has developed its own stablecoin called USD1. The platform aims to have both institutions and individuals use the digital token for payments ^[2].