The American Federation of Teachers is urging the U.S. Senate to step back from its latest cryptocurrency market structure bill, saying the proposal could expose workers’ pensions and the wider economy to unnecessary risk.
In a letter first reported by CNBC, AFT President Randi Weingarten argued that the Responsible Financial Innovation Act, as currently drafted, doesn’t offer the regulatory safeguards needed to deal with the volatility and structural challenges of crypto assets and stablecoins.
Weingarten said the bill “exposes working families…to economic risk and threatens the stability of their retirement security,” noting that many families have no involvement in cryptocurrency at all. The union, which represents 1.8 million educators and staff, stressed its commitment to protecting pension funds for current and retired members. It warned that the legislation could open the door for digital assets to enter retirement portfolios, including those of AFT members.
A core concern is a provision that may allow companies outside the crypto industry to tokenize their stock on blockchain systems. According to Weingarten, that shift could let firms sidestep long-standing securities laws, including requirements for registration, reporting, and oversight. She wrote that such a change risks weakening investor protections and limiting accountability for regulators.
The letter also warned that the bill doesn’t go far enough to address illicit activity across crypto markets, raising fears that regulatory gaps could contribute to broader financial instability.
The Responsible Financial Innovation Act is a bipartisan effort to build a clearer regulatory framework for digital assets. First introduced in 2022, the measure was updated in September with a new draft from the Senate Banking Committee. The latest version seeks to define terms such as “digital asset” and “payment stablecoin” while outlining oversight roles for the Securities and Exchange Commission and the Commodity Futures Trading Commission.
Senator Cynthia Lummis, who sponsors the bill alongside Senator Kirsten Gillibrand, said Tuesday that lawmakers expect to release a revised draft this week and aim for a Senate vote next week.
