AFL-CIO Voices Strong Concerns Over Senate Crypto Bill
The U.S. American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) is the largest federation of trade unions in the United States. The organization expressed strong concerns over the Senate draft crypto legislation, the Responsible Financial Innovation Act (RFIA), citing insufficient worker protections and inadequate regulatory oversight.
AFL-CIO director Jody Calemine stated,
“The manner in which this legislation addresses crypto assets will endanger not only retirement funds but the stability of the U.S. financial system.”
He warned that the law could allow the crypto industry to grow within the financial system through loopholes, without proper oversight or meaningful worker protections.
Retirement Funds at Risk
The AFL-CIO stressed that workers’ retirement accounts must benefit from updated financial regulations. Calemine noted:
“Instead of protecting workers from the volatility of crypto, the bill could end up subjecting their 401(k) plans and pensions to meaningful risk because it allows investment in a speculative asset class.”
The union emphasized that lawmakers should establish strong worker and pension protections before permitting institutions to include crypto in retirement plans.
Also Read : Visa Starts Testing Stablecoin for International Payments
Broader Systemic Risks Highlighted
The AFL-CIO also raised concerns about the Deposit Insurance Fund which safeguards bank deposits, backed by taxpayers, in addition to retirement accounts. The union cautioned that allowing banks to hold crypto assets could heighten systemic financial risks.
Calemine further warned that the bill’s provisions on the tokenization of securities could enable private players to issue public-like stocks beyond the oversight of the Securities and Exchange Commission (SEC).
He noted that hedge fund trading activity by banks involving crypto under the Act could become riskier than some activities that triggered the 2008 financial crisis.
AFL-CIO Urges Opposition to RFIA
The Responsible Financial Innovation Act (RFIA) is still in draft form. Senators Cynthia Lummis and Kirsten Gillibrand first introduced the Act in 2022 and are revising it in 2025.
The AFL-CIO’s letter to Congress calls for reforms, citing that the current provisions:
- Fail to protect workers and pensions.
- Give too much freedom to crypto firms.
- Could jeopardize the U.S. financial system.
The AFL-CIO concluded that the Act requires serious scrutiny and opposition in its current form due to the potential risks it poses.
