The American Federation of Teachers has sent a letter to the Senate opposing the introduction of digital assets into pensions by the Cryptocurrency Market Structure Act

On December 10, the American Federation of Teachers (AFT) submitted a petition to the U.S. Senate on Monday to withdraw the Cryptocurrency Market Structure Act, warning that the proposal would pose “deep risks” to pensions and the broader U.S. economy. In the letter, which was first obtained by CNBC, the union group 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: “Instead of providing much-needed regulatory measures and common-sense safeguards, this bill will expose working families – those currently unrelated to cryptocurrencies – to economic risks and threaten the stability of their retirement protection.” The union, which represents 1.8 million members, said in the letter that its “fundamental purpose” is to maintain a robust and reliable pension system for retired workers. The main reason for opposing the bill is concerns that it could pave the way for digital assets to enter retirement portfolios, including AFT pensions. Weingarten emphasized that a key concern lies in the potential circumvention of existing securities laws by allowing non-crypto businesses to tokenize equity through blockchain. She pointed out that this could bypass requirements such as registration, information disclosure and intermediary supervision, weakening investor protection channels and regulatory accountability mechanisms. “This loophole and the erosion of traditional securities laws will have disastrous consequences: even if pension and 401(k) plans invest in traditional securities, they may end up holding unsafe assets,” Weingarten said. In addition to retirement pensions, the letter also pointed out that the bill does not regulate illegal activities in the crypto market, warning that its loopholes could lay hidden dangers for “the next financial crisis.”