Republican Representative Troy Downing plans to introduce a bill aimed at making President Donald Trump's Bitcoin and Crypto 410(k) executive order federal law. A representative for the lawmaker confirmed that Downing plans to introduce the bill on October 21st.
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- President Donald Trump signed an executive order on August 7, 2025, allowing cryptocurrencies and other “alternative assets” into Americans' retirement plans. The order was dubbed the “401k Cryptocurrency Trump.”
- In addition to cryptocurrencies, the order also opens retirement accounts to invest in real estate and private equity.
- If Downing's bill becomes federal law, it could unlock $12 trillion of Americans' savings flowing into the cryptocurrency market.
- Bitcoin treasury company stocks were often promoted as a way to indirectly invest money from your 401(k) account in Bitcoin. If this bill is passed, the position of financial companies may be weakened.
Who is Troy Downing?
Troy Downing will represent Montana State in 2025. Before joining Congress, Downing worked as a securities and insurance auditor in Montana. In addition to that, he served in the Air Force, founded several business ventures, and worked as a researcher and educator at New York University.
As a lawmaker, he advocated rolling back Biden-era crypto regulations in favor of a more industry-friendly approach. The 401(k) bill would be his first effort to champion cryptocurrency regulation in the House. It's worth saying that before Mr. Downing introduces other bills that have nothing to do with cryptocurrencies. His efforts received bipartisan support in the House. However, there is no guarantee that the Retirement Investment Choice Act will receive the same level of support.
“We need to make sure that innovation is happening here in the United States. We need to make sure we have a reasonable regulatory framework so that people want to develop things here in the United States.”
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 during White House Crypto Week, which resulted in the passage of the GENIUS Act. He emphasized the importance of fostering U.S. innovation through a “reasonable regulatory framework.”
Although Downing advocates for deregulation and opposes the prohibitive approach to cryptocurrencies of the Gary Gensler era, he is aware of the possible risks. In March, he said during a television appearance:
“We need to have a reasonable sideboard so we don't blow up like FTX or Sam Bankman Freed.”
How to choose retirement investments
Downing's bill is called the Retirement Investment Choices Act. He said the bill would “significantly increase” the financial security of Americans by giving them the opportunity to use their retirement savings accounts to invest in alternative assets.
Traditionally, retirement accounts have been used to invest in bonds, stocks, and mutual funds. President Trump's executive order allows tax-advantaged 401(k) investment plans to include cryptocurrencies, private equity, and real estate.
President Trump's executive order ordered the Securities and Exchange Commission, Department of Labor, and Department of the Treasury to adjust rules to allow employees to invest in cryptocurrencies, real estate, and private equity through their pension funds. The name Downing Bill reflects the increase in investment options available. It is estimated that $12 trillion of funds have been locked out of investing in cryptocurrencies.
The “401(k) Cryptocurrency Trump” is seen as a way to legitimize cryptocurrencies in the eyes of the broader public, make them more accessible, and bring more stability to the market.
Federal legal status would elevate President Trump's order and make it a permanent norm nationwide.
read more: Trump 401k Cryptocurrency: What Trump Executive Order has in store for cryptocurrencies
Competition from Bitcoin ETFs and Bitcoin Treasury Companies
The adoption of the Retirement Investment Choices Act could pose a new threat to the already weakened business of Bitcoin treasury companies. One of the selling points of Bitcoin treasury companies is that people can use their retirement accounts to indirectly invest in the Bitcoin held by these companies. It is possible to invest in the stocks of these companies and is believed to offer higher yields than Bitcoin (or other cryptocurrencies) themselves. For this to happen, the total value of a company's stock must exceed the total value of Bitcoin.
Metaplanet trading below NAV.
TBH, I thought it would take longer. Metaplanet is a best-in-class international BTC DAT and the 4th largest BTC treasury holder.GOAT, $MSTR is still trading at c. 1.4x mNAV
— Heart (@shunqu22) October 14, 2025
Many of these companies fail to deliver on their promises. One of the latest examples is Metaplanet, the fourth largest Bitcoin holder. The company's stock price has fallen 97% since its peak. On October 14, 2025, the total value of the company's stock fell below the amount of Bitcoin it held, making the company's stock less profitable than direct investment in Bitcoin.
read more: Metaplanet stock flashes death cross as key indicators fall
Such cases will continue to snowball from the second half of summer 2025. Sequans and Nakamoto are also notable examples of Bitcoin government bonds, with their stock prices dropping 98% and 80%, respectively.
Bitcoin ETFs have become a major competitor for Bitcoin treasury companies in the TradFi space that seeks to leverage Bitcoin. In an attempt to explain why Bitcoin Treasuries are better than Bitcoin ETFs, Jack Mullers, CEO of Bitcoin Treasuries at Twenty One Capital, whose stock price has fallen nearly 60%, said:
“What makes us uniquely different from ETFs is that we are an operating company, so we were founded as a Bitcoin business with the core goal of increasing what we call Bitcoins per share. Our goal is to be the best way for capital markets to participate in this Bitcoin story.”
Bitcoin treasury companies could lose a large portion of their investors if $12 trillion in capital is unlocked for 401(k) investment plans, as many people will have the opportunity to invest directly in Bitcoin. Given that these companies' share prices are falling, they will need to offer more perks to keep investors loyal.
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