The American Federation of Teachers (AFT) is urging the U.S. Senate to withdraw the bipartisan “Responsible Financial Innovation Act,” warning that the proposal poses “profound risks” to the retirement security of millions of American workers.
The union, representing 1.8 million members, argues that the bill could open the door for unsafe digital assets to enter pension systems without proper oversight.
AFT President Randi Weingarten said the legislation might allow non-crypto companies to tokenize equity on blockchains, bypassing long-standing securities rules on registration and disclosure. She fears this shift would weaken investor protections and expose pensions and 401(k)s to assets that appear traditional but carry hidden risks.
Concerns Over Regulatory Gaps
Beyond retirement exposure, the AFT criticizes the bill for failing to impose meaningful safeguards on cryptocurrencies and stablecoins. The union states that the draft framework does little to address illicit activity in crypto markets and leaves major regulatory gaps unfilled.
According to AFT leaders, the lack of clear enforcement standards could eventually contribute to financial instability if digital assets are integrated prematurely into traditional investment channels.
Legislative Negotiations Intensify
The proposed law seeks to classify digital commodities and expand the Commodity Futures Trading Commission’s oversight role. Senate negotiators have been working to refine the bill, with Banking Committee Republicans recently submitting more than thirty changes to Democratic lawmakers. Senators Cynthia Lummis and Kirsten Gillibrand hope to deliver a revised version and secure a committee vote before the holiday recess.
Bill’s Future Remains Uncertain
Despite accelerating discussions, the bill’s path forward is unclear. The White House has yet to endorse key provisions, including those involving ethics rules and regulatory authority. Any delay may push consideration into the 2026 election cycle, complicating bipartisan cooperation. The AFT’s public opposition adds new political pressure to an already divided debate and raises fresh questions about the bill’s long-term viability.