The American Federation of Teachers (AFT), one of the largest labor organizations in the United States, has launched a strong public opposition to a key piece of proposed cryptocurrency legislation. The union expressed deep concern that the bill could expose the retirement savings of millions of Americans to “profound and reckless risks.” The AFT’s stance adds a powerful, influential voice to the growing regulatory debate surrounding digital assets on Capitol Hill.
The bill in question, known as the Financial Innovation and Technology for the 21st Century Act (FIT21), is currently under consideration in Congress. Proponents of the legislation argue that it creates a clear regulatory framework for the crypto market. They say this clarity would foster innovation and establish the United States as a leader in the rapidly evolving digital finance sector.
However, the AFT strongly disagrees with the bill’s approach. The union’s primary objection centers on the potential for the bill to weaken current investor protections. AFT President Randi Weingarten specifically warned that the proposed law could effectively lower the standards for listing digital assets. She argued this shift might allow speculative, risky assets to enter the market with less oversight.
The union, which represents 1.7 million members, is particularly worried about the impact on defined contribution plans, such as 401(k)s. The AFT believes that if the crypto market gains broader regulatory acceptance without adequate consumer safeguards, more plan sponsors may feel pressure to offer digital assets as investment options. This scenario, they argue, introduces excessive volatility and risk into funds intended to provide long-term financial security for retired teachers and public workers.
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The AFT issued a public letter criticizing the legislation. The letter warned that the bill might dangerously undermine the role of the Securities and Exchange Commission (SEC) in regulating the crypto space. The FIT21 Act proposes dividing oversight authority. It grants the Commodity Futures Trading Commission (CFTC) increased jurisdiction over certain digital assets, classifying them as commodities rather than securities. The AFT contends that the SEC, with its established history of investor protection, should retain primary regulatory authority.
The letter from the AFT urges lawmakers to reject the current bill. Instead, the union advocates for a comprehensive regulatory approach that prioritizes consumer protection and financial stability. They stress that the pursuit of financial innovation must not come at the expense of retirement security for middle-class workers.
The debate surrounding FIT21 highlights the ongoing tension between industry demand for clear rules and regulator caution over the inherent volatility of digital assets. The AFT’s intervention shifts the political discussion by focusing squarely on the protection of workers’ savings.
