August 4, 2025
5 min read
Better Markets | Transparency. Accountability. Oversight.
Better Markets urges states to protect public retirement savings from crypto volatility and calls for transparency and fiduciary responsibility.
New Report Warns Against State Pension Fund Investments in Cryptocurrency: Better Markets Urges States to Protect Public Retirement Savings from Crypto Volatility
WASHINGTON, D.C. — Brady Williams, Legal Counsel, issued the following statement in connection with Better Markets’ new Fact-Sheet, titled State Pension Fund Investment in Cryptocurrency: A Risky Gamble with Public Retirement Security: As more U.S. states consider investing taxpayer-backed pension funds into cryptocurrencies, a new report released today by Better Markets warns that such actions pose a grave threat to the retirement security of millions of public workers. Entitled State Pension Fund Investment in Cryptocurrency: A Risky Gamble with Public Retirement Security, Better Markets’ new report highlights a troubling national trend: the growing exposure of state-controlled pension systems to highly volatile digital assets like Bitcoin and crypto-linked exchange-traded products. The report finds that more than 20 states have introduced legislation in just the past two years that would permit or expand crypto investments in public funds, often with minimal oversight or disclosure.State pension funds are not venture capital. These are long-term, risk-averse portfolios meant to provide a secure, stable retirement for teachers, firefighters, nurses, and countless other public servants. Cryptocurrency is fundamentally incompatible with that mission.
Key Concerns Identified in the Report
- The Emerging Trend: Dozens of states have already proposed allowing pension funds to invest in cryptocurrencies, stablecoins, and crypto ETFs—despite widespread market volatility.
- Political and Economic Pressures: Chronic underfunding and demographic shifts are pushing policymakers toward risky investments in hopes of unrealistic returns.
- Fiduciary Red Flags: Public pensions are not protected by federal pension insurance, and crypto’s instability could leave beneficiaries vulnerable to massive losses.
- Systemic Risks: Extreme price swings, regulatory ambiguity, and the lack of transparency across crypto markets make digital assets an irresponsible choice for public retirement portfolios. Better Markets calls on states to take immediate action, including:
- Prohibiting crypto investments in pension funds.
- Mandating full public disclosure of any digital asset exposure.
- Prioritizing fiduciary education and responsible funding strategies.
- AI Crypto Trading Bots: Maximizing Returns with Advanced Algorithms
- Understanding Cryptocurrency Volatility: A Guide for Investors
- The Importance of Regulatory Compliance in the Digital Asset Space
Gambling with the futures of public workers is not financial innovation—it’s a betrayal of public trust. Lawmakers must act now to ensure retirement systems are managed with prudence, transparency, and a commitment to long-term stability.The Fact Sheet is available here.
Better Markets is a non-profit, non-partisan, and independent organization founded in the wake of the 2008 financial crisis to promote the public interest in the financial markets, support the financial reform of Wall Street, and make our financial system work for all Americans again. Better Markets works with allies—including many in finance—to promote pro-market, pro-business, and pro-growth policies that help build a stronger, safer financial system that protects and promotes Americans’ jobs, savings, retirements, and more. To learn more, visit www.bettermarkets.org.
Media Contact
For media inquiries, please contact press@bettermarkets.org or call 202-618-6433.Source: Better Markets on August 4, 2025