- The American Federation of Teachers (AFT) has called on the US Senate to abandon the Responsible Financial Innovation Act, citing significant risks to retirement security.
- The union argues the bill strips safeguards from crypto assets and weakens protections for traditional securities, allowing tokenized stocks to evade regulation.
- Sponsored by Senators Cynthia Lummis and Kirsten Gillibrand, the legislation seeks to establish a federal framework for digital assets amid ongoing negotiations.
The American Federation of Teachers, representing 1.8 million members, has urged the US Senate to withdraw the Responsible Financial Innovation Act, a key crypto market structure bill. In a letter from AFT President Randi Weingarten, the union highlighted profound risks to pensions and the broader economy. The bill, updated with a new discussion draft in September 2025, aims to define regulatory oversight for digital assets between the SEC and CFTC.
Weingarten’s letter emphasizes that the legislation fails to provide adequate guardrails for crypto’s inherent risks. Instead, it erodes protections for traditional securities, potentially allowing non-crypto companies to tokenize shares on blockchain without standard registration or reporting requirements. This loophole could expose retirement funds, including 401(k) plans, to unsafe assets and fraud.
“Rather than providing desperately needed regulation and commonsense guardrails, this bill exposes working families—families with no current involvement in or connection to cryptocurrency—to economic risk and threatens the stability of their retirement security,” Weingarten wrote in the letter.
The AFT warns that passing the bill could lay the groundwork for the next financial crisis by doing little to curb illegal activities in crypto markets. Similar concerns have been echoed by the AFL-CIO, underscoring broader labor opposition. Democrats, whose votes are crucial for passage, have expressed reservations over tokenization provisions and potential regulatory gaps.
On the other side, proponents like Senator Lummis argue the bill offers much-needed clarity for the crypto industry, establishing uniform standards for exchanges, brokers, and token issuers. However, negotiations remain contentious, with some crypto stakeholders withdrawing support to avoid concessions, according to Decrypt.
The bill’s fate could impact how digital assets integrate into mainstream finance, but critics highlight risks to investor protections. As Senate leaders aim for a vote by early 2026, the AFT’s intervention adds pressure amid a divided Congress.
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