Teachers’ Union Warns Senate Crypto Bill Could Jeopardize Retirement Security for Millions

American Federation of Teachers Takes Stand Against Proposed Cryptocurrency Legislation

In a bold move that highlights growing concerns about digital asset regulation, the American Federation of Teachers (AFT) has formally urged Senate leadership to abandon its proposed cryptocurrency market structure bill, warning that the legislation could expose pension funds and retirement accounts to unprecedented risks. The union, representing approximately 1.7 million educators and public service workers nationwide, delivered a strongly-worded letter to lawmakers this week that paints a troubling picture of potential consequences for working families if the bill advances.

Union Leadership Warns of “Profound Risks” to Financial Security

AFT President Randi Weingarten’s letter, first reported by CNBC, argues that the Responsible Financial Innovation Act would effectively dismantle critical protections currently governing cryptocurrency assets while simultaneously weakening long-established safeguards for traditional securities markets. “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 with evident concern.

The union’s opposition centers on provisions that would allow companies to place stocks and other securities on blockchain technology without meeting standard registration and reporting requirements under existing federal regulations. For the AFT, whose membership includes K-12 teachers, higher education faculty, school support staff, healthcare professionals, and government employees across the country, the potential impact on pension funds represents an unacceptable gamble with members’ financial futures.

Understanding the Contentious Legislation

The Responsible Financial Innovation Act represents the Senate’s primary attempt to establish comprehensive cryptocurrency regulation by clearly defining jurisdictional boundaries between the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC). The proposed legislation aims to create a federal framework governing how digital asset exchanges, brokers, custodians, and token issuers operate, potentially establishing uniform standards for registration, disclosure requirements, consumer protections, and the handling of customer assets.

Current discussions have focused on establishing new compliance obligations for cryptocurrency issuers and intermediaries, with significant attention being paid to creating a legal pathway for tokenized versions of traditional financial instruments to trade under a revised federal framework. Proponents argue these changes would bring needed clarity to a rapidly evolving financial sector, while critics—now including one of the nation’s largest labor unions—warn the bill may sacrifice essential protections in pursuit of innovation.

Industry Division Reflects Broader Policy Challenges

The AFT’s intervention comes amid growing fractures within the cryptocurrency industry itself over the direction of potential regulation. At the Blockchain Association’s annual policy summit in Washington, D.C. this week, what was once a united front has splintered into competing visions. Decrypt’s coverage of the event revealed significant disagreements over fundamental issues including decentralized finance (DeFi) regulations, government visibility into peer-to-peer transactions, and what compromises might be acceptable to advance legislation.

Several prominent industry stakeholders have withdrawn support entirely, adopting the position that no legislation would be preferable to a bill containing what they view as problematic concessions. This division was palpable during the summit, with Decrypt noting a stark contrast between the optimistic messaging delivered on stage and the more pessimistic assessments shared in private conversations. The schism reflects broader uncertainty about how to balance innovation with consumer protection in an industry still working to overcome trust issues following several high-profile collapses and fraud cases.

Political Complications Add Further Uncertainty

The legislative outlook has become increasingly complicated by potential changes to regulatory agency leadership and structure. Democratic Senator Cory Booker expressed “deep concern” about the bill’s prospects following indications that the Supreme Court might soon allow President Trump to remove SEC and CFTC commissioners at will. “This is a massive expansion of presidential power. We’ve seen what [Trump] has done with this power already, to advantage his friends in a very corrupting way,” Booker told Decrypt at the policy summit.

With no Democrats currently seated at either regulatory agency and none expected before January at the earliest, Booker suggested the absence of minority commissioners could potentially be a deal-breaker. The Supreme Court is currently considering whether to reverse President Trump’s dismissal of Rebecca Slaughter, a former Democratic Federal Trade Commission commissioner whose husband, Justin Slaughter, ironically works with cryptocurrency investment firm Paradigm—one of the organizations advocating for the bill’s passage.

The Stakes for American Workers and Financial Systems

The AFT’s intervention transforms what might have remained an industry-specific debate into a broader conversation about protecting working families and their financial security. By highlighting potential threats to pension systems that serve millions of Americans, the union has effectively elevated the stakes surrounding cryptocurrency regulation and forced lawmakers to consider implications beyond the digital asset marketplace.

As the Supreme Court prepares to hear arguments next week in the Slaughter case against President Trump, all stakeholders are watching closely to see how leadership questions at key regulatory agencies might impact the bill’s chances. The AFT’s powerful stand underscores the reality that decisions about cryptocurrency regulation will have consequences far beyond the relatively small percentage of Americans currently invested in digital assets.

For teachers, healthcare workers, and other public servants whose retirement security depends on well-regulated markets with strong consumer protections, the union’s message is clear: innovation in financial markets cannot come at the expense of the financial stability of working families. As Senate leaders weigh their next steps, they now face pressure not only from competing industry interests but also from one of the nation’s most influential labor organizations representing the economic interests of nearly two million American workers.