The American Federation of Teachers (AFT), a union representing educators across the United States, has expressed strong opposition to cryptocurrency market structure legislation currently under consideration in the Senate. The union argues that the proposed bill "threatens the stability of their retirement security."
In a letter dated Monday and addressed to the leaders of the US Senate Banking Committee, the AFT stated its opposition to the passage of the Responsible Financial Innovation Act. This bill, according to senators, builds upon the House of Representatives' proposed solution to market structure issues, known as the CLARITY Act. The teachers' union contends that the legislation poses "profound risks" to both economic stability and the integrity of retirement plans.
"This bill fails to provide a regulatory structure for crypto assets and stablecoin that is equivalent to that for other pension holdings," the letter explained. "Most pensions do not carry crypto assets because of their risk. This legislation pretends that crypto assets are stable and mainstream, and they are not."
The CLARITY Act, a draft of the market structure bill proposed by the Senate Banking Committee in July, and a subsequent draft from the Senate Agriculture Committee in November, did not explicitly permit digital assets to be incorporated into pensions or retirement funds. The AFT voiced concerns that if the bill were to be enacted, "Pensions and 401(k) plans will end up having unsafe assets even if they were invested in traditional securities."
The American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) echoed similar concerns in an October letter to the banking committee. The AFL-CIO highlighted the market structure bill's potential risks to "retirement funds and to the overall financial stability of the US economy," asserting that the legislation would "increase workers’ exposure by greenlighting retirement plans like 401(k)s and pensions to hold this risky asset."
The AFT represents a substantial membership of 1.8 million individuals employed in education, healthcare, and public services. Data from the National Association of State Retirement Administrators indicates that as of the second quarter of 2025, aggregate public pension assets, which include those for teachers, exceeded $6.5 trillion. Furthermore, the Investment Company Institute reported in September that total retirement assets in the United States were approximately $45.8 trillion.
President Trump's Executive Actions on Crypto in Retirement Funds
In parallel to the Senate's legislative efforts concerning market structure, US President Donald Trump has pursued policy changes aimed at allowing cryptocurrencies to be included in 401(k) retirement plans. In August, Trump signed an executive order that directed the Department of Labor to review existing restrictions on alternative assets, including digital assets, within defined-contribution plans.
Asset management firms have already begun to signal a growing willingness to incorporate digital assets into individual retirement arrangements (IRAs) and 401(k)s.
Reports from October indicated that Morgan Stanley started permitting its financial advisors to recommend crypto funds as part of their clients' retirement portfolios. Additionally, state-managed retirement funds, such as those in Michigan and Wisconsin, have reportedly gained exposure to crypto through exchange-traded funds linked to digital assets.
The timeline for a full Senate vote on a market structure bill remains uncertain. Senator Cynthia Lummis of Wyoming, a prominent supporter of the legislation, indicated on Tuesday that she expected the banking committee to release an updated draft of the bill this week, with a potential markup hearing scheduled before Congress recessed for the holidays.