Senators Pat Toomey, Tim Scott and Peter Meijer have just proposed a bill in Congress that would allow 401(k) plans to stretch beyond traditional investments like stocks and bonds.

And when we say "beyond," we mean way beyond.

If their Retirement Savings Modernization Act became law, 401(k) plans could start offering not just things like commodities, but even "hedge funds," "venture capital," "digital assets" (laughter), and — literally–"any fund, commingled account, or pooled investment vehicle that invests in any investment."

When I read that in the bill I immediately thought of the most infamous scam during the South Sea Bubble of 1720, where someone fleeced an army of willing suckers by getting them to invest in "A company for carrying on an undertaking of great advantage, but nobody to know what it is."

OK, so we are now in a lame-duck session of Congress and no bills are getting passed any time soon. Toomey is about to retire. And so far this is just three senators. But these ideas keep knocking around in D.C.

The senators, announcing the bill, say it would "bolster Americans' retirement savings by allowing workers to diversify assets."

"This reform will open the door to higher returns and a more secure retirement for millions of Americans," said Toomey.

"This bill would modernize retirement plans to ensure they can provide diverse investments with higher returns," said Scott. He added: "American workers and their families deserve to go about their lives with peace of mind, knowing their hard-earned money will be secure when they choose to retire."