AFT Pushes Senate to Reconsider Proposed Crypto Market Structure Bill

A long-running divide persists over the proposed crypto market structure bill. Backers argue that the measure could bring order to a sector that moves at breakneck speed, while critics warn it may introduce new risks instead of reducing them. The American Federation of Teachers has become one of the most vocal opponents, urging the U.S. Senate to halt the legislation. The union said the proposal carries serious dangers for pensions and the broader U.S. financial system.

Union Raises Alarm Over Crypto Risks to Pensions

Randi Weingarten, who heads the AFT, delivered a letter on Monday outlining the union’s position. In her view, the proposed bill fails to provide the kind of oversight and protections that many stakeholders have been seeking. She warned that the framework “exposes working families— families with no current involvement in or connection to cryptocurrency—to economic risk and threatens the stability of their retirement security.”

Building on these concerns, the letter explained that the bill does more than leave crypto assets without clear protections. The union argued that the bill removes the limited safeguards currently in place while also weakening long-standing rules for traditional securities. They cautioned that passing the measure in its current form could undermine the stability of multiple asset classes and put retirement portfolios under strain.

AFT members throughout the country rely on their pensions—their deferred wages. These retirement plans must have funds that are shielded from fraud and unethical practices. This bill fails to provide a regulatory structure for crypto assets and stablecoin that is equivalent to that for other pension holdings.

Concerns Over Investor Protections and Retirement Funds

Representing roughly 1.8 million members, the union highlighted several other key concerns about the proposal:

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  They fear the bill could let companies move shares onto blockchain-based systems, allowing digital assets to bypass investor protections such as disclosures, intermediary oversight, and standard reporting rules.
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  The union warned that combining these gaps with the weakening of existing securities rules could create serious risks across the financial system.
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  As a result, retirement plans such as pensions and 401(k)s could end up holding unsafe assets, even when they were invested in conventional securities.

Weingarten went on to explain that the draft does little to confront the fraud, misconduct, and other illicit behavior that still shows up across many crypto markets. She called the approach reckless and cautioned that it could set the stage for a future financial crisis.

She added, “as a labor union, we are fundamentally committed to strong, safe pensions that are there for workers in their retirement; because of this we oppose this bill and urge you to do the same.”

Clarifying Rules and Oversight in the Crypto Sector

Meanwhile, the Responsible Financial Innovation Act, a bipartisan effort created in 2022, aims to establish clearer rules for the crypto sector. This year, the Senate Banking Committee released a revised discussion draft, showing how lawmakers plan to update oversight and regulation in this rapidly evolving area.

The revised legislation builds on this effort by defining key concepts, including crypto assets and payment-focused stablecoins, and by clarifying how oversight duties would be shared between the Securities and Exchange Commission and the Commodity Futures Trading Commission. The goal is to provide clearer rules and reduce uncertainty in a sector that has long operated under fragmented regulations.