The American Federation of Teachers Challenges Crypto Legislation

On August 28, 2025, during a March on Wall Street in New York City, Randi Weingarten, president of the American Federation of Teachers (AFT), took a firm stance against a proposed cryptocurrency legislation. Her passionate address underscored the union’s deep concerns regarding the risks inherent in the current crypto market structure bill, known as the Responsible Financial Innovation Act. This legislation, which is currently under consideration by the Senate Banking Committee, has sparked significant debate, particularly among labor unions and financial experts alike.

The AFT’s Concerns

In a letter obtained exclusively by CNBC, Weingarten articulated the AFT’s position. With 1.8 million members relying on pensions and other retirement plans, the implications of the crypto bill are particularly daunting. Weingarten criticized the legislation as "irresponsible" and "reckless," expressing fears that it could jeopardize the pensions of working families and destabilize the broader economy.

The AFT argues that the proposed legislation erroneously presents crypto assets as stable investments suitable for retirement plans. Weingarten emphasized that, instead of introducing necessary safeguards, the bill threatens to erode existing protections for traditional securities. She highlighted that while the legislation promotes the inclusion of digital assets, it lacks adequate measures to curb prevalent fraud and illegal activity within the crypto sector.

Risks of Legislative Loopholes

One major concern raised by the AFT involves the potential for non-crypto companies to leverage blockchain technology in ways that could sidestep current securities regulations. This “tokenization” of financial assets has caught the attention of major financial players, including Larry Fink, CEO of BlackRock, who has championed the concept. The AFT fears that allowing such practices could lead to serious repercussions for retirement funds which are typically invested in traditional securities.

Weingarten warned that this regulatory oversight could inadvertently introduce unsafe assets into pensions and 401(k) plans, undermining the financial security of countless workers. The rise of poorly regulated digital assets poses a genuine threat, exacerbating existing vulnerabilities in the financial system.

Broader Industry Backlash

The AFT’s objections are not isolated. The AFL-CIO, the largest labor union in the nation, also expressed its disapproval of the crypto market structure bill. This growing coalition against the legislation indicates a rising concern that many stakeholders, especially those representing working-class Americans, feel regarding the corporate influence in legislative processes concerning digital assets.

Prominent banking leaders, including CEOs from Bank of America, Citi, and Wells Fargo, have engaged with lawmakers to discuss the proposed structure, indicating that the cryptocurrency debate spans across both labor and financial sectors. This coalition of interests underscores the complex and often contentious relationship between crypto assets and traditional financial systems.

Key Players in Legislative Process

The co-sponsors of the bill, including Senators Cynthia Lummis (R-Wyoming) and Bernie Moreno (R-Ohio), represent a critical faction within Washington pushing for a more defined regulatory framework for digital assets. Their willingness to navigate this uncharted territory represents a significant shift amidst calls for caution from various corners of the political landscape.

Senate discussions are currently dissecting the balance of regulatory authority between the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC). This division reflects the broader uncertainty that surrounds how digital assets will be categorized and regulated, an issue that has left even Republican senators like Mark Warner (D-Va.) grappling for clarity.

The Path Forward

As deliberations continue, the AFT and other labor organizations remain on high alert, advocating for measures that ensure the safety of pensions and the integrity of the financial market. With calls for legislative vetting emerging from the crypto industry, the need for a balanced and comprehensive approach to crypto regulation becomes increasingly urgent.

Through these dialogues, it is evident that a cautious approach is necessary to protect both individual investors and the broader framework of financial safety. The current landscape suggests that as policymakers venture into the realm of blockchain technologies and digital currencies, they will have to tread carefully to navigate the myriad risks involved.

In this evolving narrative around cryptocurrency, various perspectives converge, driving home the point that the implications of such legislation extend far beyond the tech world and into the pockets of working families across the nation.