Teachers Union and Other Groups Oppose Senate Crypto Bill Citing Risks to Pensions and Economy
The American Federation of Teachers (AFT), the second-largest teachers union, has urged the U.S. Senate to reconsider the Responsible Financial Innovation Act (RFIA). The union expressed concerns that the bill could put the pensions of its 1.8 million members and economic stability at risk, citing weak fraud protections in the legislation.
The RFIA aims to regulate digital assets and raises questions about how tokenized securities would be treated by regulators. The bill is co-sponsored by Senators Cynthia Lummis and Bernie Moreno, with Senator Tim Scott serving as Chair of the Senate Banking Committee. It builds on a measure passed by the House earlier this year.
In a December 8 letter to the Senate Banking Committee, AFT President Randi Weingarten warned that the bill could threaten retirement security and economic stability and potentially enable a new financial crisis.
Alongside AFT, the AFL-CIO and the Institute of Internal Auditors have also voiced opposition to the bill. The AFL-CIO criticized the legislation for failing to protect consumers, workers, and the financial system, warning it could normalize risky assets. The Institute of Internal Auditors stated in August that the draft does not adequately address governance and risk management at digital asset exchanges.
Previously, Senator Lummis described the draft bill as balanced and protective for consumers, while Senator Bill Hagerty supported its consumer guardrails. However, opposition from key labor groups and auditors highlights ongoing debates over the bill's approach to regulating the digital asset market.
