Teachers Union Urges Senate to Drop Crypto Market Structure Bill
The Responsible Financial Innovation Act is a significant law that will structure the cryptocurrency market. The American Federation...
Quick overview
- The Responsible Financial Innovation Act aims to regulate the cryptocurrency market but faces opposition from the American Federation of Teachers (AFT).
- AFT warns that the bill could jeopardize pension funds and investor protections for millions of workers, including educators and healthcare professionals.
- Concerns include the potential for tokenized stocks to bypass standard federal regulations, increasing risks for investors.
- Political uncertainty and divisions among lawmakers further complicate the future of the bill and its implications for the crypto market.
The Responsible Financial Innovation Act is a significant law that will structure the cryptocurrency market. The American Federation of Teachers (AFT) has urged U.S. Senate leaders to halt its progress. The idea according to the union would jeopardize the pension funds of millions of workers and erode investor protections.
Teachers' union AFT slams crypto market bill, warns of 'profound risks' for America's retirement plans https://t.co/jniLhDbWqM
— CNBC (@CNBC) December 9, 2025
Union Warns Bill Could Harm Retirement Security
AFT President Randi Weingarten stated in a statement on Monday that the law eliminates crucial protections for cryptocurrency holdings. He cautioned that the plan would expose public employees, teachers and nurses many of whom have pensions invested in traditional markets to risky digital assets and fraud.
The 1.7 million members of the AFT include educators, healthcare professionals and school personnel.
The law according to Weingarten”exposes working families to economic dangers” and lacks the explicit protections required in the rapidly expanding cryptocurrency industry.
https://www.cnbc.com/2025/12/09/aft-slams-crypto-market-bill-warns-of-profound-risks-for-retirement.html
Fears of Weaker Regulations and Tokenized Stocks
The bill’s potential to enable businesses to list conventional stocks on a blockchain without adhering to standard federal regulations is one of the AFT’s main worries.
This implies that tokenized equities might be traded without the typical disclosures, reporting or registration that are now necessary to safeguard investors.
According to the union, this modification will make long-standing securities regulations less effective and allow for new types of financial abuse.
What the Bill Tries to Do
The Senate’s primary attempt to establish precise regulations for the cryptocurrency sector is the Responsible Financial Innovation Act. It seeks to:
- Describe if digital assets are subject to the CFTC or the SEC.
- Set national guidelines for token issuers, brokers, exchanges and custodians.
- Establish consistent guidelines for asset handling, disclosures and consumer protection.
However lawmakers and groups in the cryptocurrency business are divided over how the measure should handle DeFi, peer-to-peer transactions and tokenized securities.
Tensions in Washington are rising.
The bill is being debated at a time when Washington’s crypto policy is already heated. Groups that previously agreed on cryptocurrency problems are now sharply divided at this week’s policy meeting of the Blockchain Association.
A number of organizations stated that they would prefer to have no bill at all than one that compels them to make detrimental compromises.
A fresh draft may be available shortly according to lawmakers from both parties, although the pace seems to be stalling.
Political Uncertainty Adds More Risk
The Supreme Court may soon permit President Trump to remove SEC and CFTC commissioners at will according to Democratic Senator Cory Booker who warned that the bill’s chances have decreased.
He described this as “a massive expansion of presidential power” and expressed grave worries about depending on regulators who could be fired at any moment.
Booker thinks this could be a deal-breaker because neither agency currently has any Democratic commissioners nor none are anticipated until at least January.
Unknown Next Steps
To support the law the Supreme Court is considering Trump’s dismissal of former FTC commissioner Rebecca Slaughter whose husband is currently employed at the cryptocurrency investing business Paradigm. Next week the matter will be heard.
The future of the crypto market structure bill is still unclear because to political differences unclear regulations and mounting criticism from influential organizations like the AFT.
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