Teachers Union Opposes Crypto Market Structure Legislation

By: Eliza Bennet

The American Federation of Teachers (AFT), representing educators across the United States, has strongly opposed the ongoing crypto market structure legislation in a letter to the US Senate Banking Committee. This move comes as the digital asset market structure bill progresses through the legislative process, with the AFT expressing that it poses significant risks to the financial stability of retirement funds.

The proposed legislation, known as the Responsible Financial Innovation Act, seeks to address the regulatory environment surrounding cryptocurrencies by building on the frameworks laid down by the House of Representatives' CLARITY Act. However, the AFT contends that the bill introduces "profound risks" to economic stability, especially concerning the security of retirement plans. According to the union, the legislation fails to apply a regulatory structure to crypto assets and stablecoins that matches that of other pension assets.

The teachers' union emphasizes that most pension plans do not include crypto assets due to their inherent risk and volatility. They argue that the proposed bill inaccurately frames crypto assets as stable and mainstream investments, which they claim is not the case. The union urges lawmakers to reconsider supporting the bill, cautioning that it would erode existing protections within securities markets and amplify risks for pension holders.

This opposition aligns with similar concerns from other labor organizations that are wary of integrating crypto assets into mainstream financial frameworks without robust regulatory safeguards. As discussions continue in Congress, these warnings highlight the broader debate surrounding the inclusion of digital assets in traditional retirement portfolios and the necessity for comprehensive oversight to protect investors.