The American Federation of Teachers wrote to the Senate, opposing the inclusion of digital assets in the "Cryptocurrency Market Structure Act" for retirement funds

According to The Block, the American Federation of Teachers (AFT) submitted a petition to the U.S. Senate on Monday, calling for the withdrawal of the cryptocurrency market structure bill, warning that the proposal poses "serious risks" to pensions and the broader U.S. economy. In a letter first obtained by CNBC, the union organization pointed out that the Responsible Financial Innovation Act fails to establish adequate regulatory protections against the inherent risks of cryptocurrency assets and stablecoins.

AFT President Randi Weingarten wrote in the letter, "This bill not only fails to provide the necessary regulatory measures and common-sense safeguards but also exposes working families—those currently with no connection to cryptocurrency—to economic risks and threatens the stability of their retirement security." The union, representing 1.8 million members, stated that its "fundamental purpose" is to maintain a robust and reliable pension system for retired workers.

The main reason for opposing the bill is the concern that it may pave the way for digital assets to enter retirement portfolios, including AFT pensions. Weingarten emphasized that a key concern is that the bill could allow non-crypto companies to tokenize equity through blockchain, thereby circumventing existing securities law regulations. She noted that this could bypass requirements for registration, disclosure, and intermediary oversight, undermining investor protection channels and regulatory accountability mechanisms.

Weingarten stated, "This loophole and the erosion of traditional securities law will have catastrophic consequences: even if pensions and 401(k) plans invest in traditional securities, they may ultimately hold unsafe assets." In addition to retirement pensions, the letter also pointed out that the bill lacks sufficient regulatory measures against illegal activities in the crypto market, warning that its loopholes could lay the groundwork for "the next financial crisis."