The American Federation of Teachers, the powerful union that represents 1.8 million members, is urging the Senate Banking Committee to reconsider its crypto market structure bill, the Responsible Financial Innovation Act, calling the bill “both irresponsible and reckless” in a letter obtained exclusively by CNBC.
In the letter that AFT President Randi Weingarten sent to Senate Banking Committee Chairman Tim Scott (R-SC) and Ranking Member Elizabeth Warren (D-Mass.), she wrote that the union opposed the bill because of the “profound risks to working families’ retirements and to the overall stability of the economy.”
“The crypto legislation we have seen considered by the committee over the past few months deeply concerns us,” Weingarten added.
The AFT is concerned that by passing crypto legislation, the government will open the floodgates to widespread fraud and unethical practices in retirement plans, including AFT pensions.
“This legislation claims that crypto assets are stable and mainstream, and that is not the case. Rather than remaining silent on crypto, this bill removes the few safeguards that exist for crypto and erodes many protections for traditional securities. If passed, it will undermine the security of many assets and cause problems in retirement investments,” Weingarten wrote.
The AFT cited a specific problem with the bill that would allow non-crypto companies to place their shares on the blockchain and escape the existing securities regulatory framework. Wall Street has become interested in the idea of “tokenization” of all financial assets, with Larry Fink, CEO of black rockthe largest asset manager in the world, a leading evangelist of the concept.
“This loophole and the erosion of traditional securities law will have disastrous consequences: Pensions and 401(k) plans will end up having dangerous assets even if they were invested in traditional securities,” Weingarten wrote.
She argued that the legislation considered by the committee does little to combat the fraud, illegal activities and corruption that continue to be prevalent in crypto markets. Weingarten called the legislation “irresponsible” and “reckless.”
“We believe that if passed, this bill could potentially lay the groundwork for the next financial crisis,” she wrote.
NEW YORK, NEW YORK – AUGUST 28: American Federation of Teachers (AFT) President Randi Weingarten speaks during the March on Wall Street on August 28, 2025 in New York City.
Michael M. Santiago | Getty Images News | Getty Images
The AFL-CIO, the nation’s largest union, declared its opposition to the Senate Banking Committee on a crypto bill in October.
CNBC also confirmed that on Thursday, the CEOs of Bank of America, Citi And Wells Fargowill meet with lawmakers to discuss crypto market structure proposals.
The currently proposed legislation, which builds on a bill passed by the House of Representatives over the summer, is co-sponsored by Senator Cynthia Lummis (R-Wyoming) and Senator Bernie Moreno (R-Ohio), alongside Chairman Scott. It aims to create a regulatory structure for digital assets, but also raises questions about tokenized securities that are not specifically cryptocurrencies.
Tokenization is a major concern as the bill gains momentum on Capitol Hill and is a barrier to gaining the support from Democrats that will be needed for its passage. A previous CNBC report says Senate supporters will need to attract votes from at least seven Democrats for the legislation to pass. At last week’s CNBC CFO Council Summit in Washington, D.C., Sen. Mark Warner (D-Va.) told attendees, “I’m in crypto hell right now, trying to get the market structure bill passed.” »
Warner is part of a group of Democratic senators who met Monday to review the Senate banking plan and consider counteroffers, according to Politico.
Many Democrats, including Warren, are also concerned about the balance of regulatory oversight of cryptocurrencies between the CFTC and the Securities and Exchange Commission. States, meanwhile, fear their laws could be overturned by a new federal law, leaving them powerless to protect their residents from fraud, a concern highlighted by Massachusetts Secretary of State William Galvin in a letter to the Senate on banking, writing that the “sweeping provisions that will exclude significant parts of the financial sector from state oversight.” This is a recipe for disaster for millions of savers. »
Progress on the Senate version of a crypto market structure bill has been stalled for weeks due to the longest government shutdown in U.S. history. Speaking Tuesday morning at the Blockchain Association Policy Summit in Washington, DC, Senator Lummis provided insight into when we might expect the Senate’s version of a crypto market structure bill. She said her goal was to share a draft by the end of the week, then let the crypto industry as well as Republicans and Democrats review it and do markup next week.
