US teachers union urges Senate to withdraw crypto market structure bill

The American Federation of Teachers (AFT), representing 1.8 million members, formally petitioned the U.S. Senate to withdraw the Responsible Financial Innovation Act, citing "profound risks" to pensions and the broader economy. AFT President Randi Weingarten argued that the bill lacks adequate regulatory protections for crypto assets and stablecoins, potentially exposing working families' retirement security to economic risk. A key concern is that the bill might allow non-crypto companies to tokenize their stock on the blockchain, bypassing established securities laws regarding registration, reporting, and accountability. The union warned this loophole could lead to unsafe assets entering retirement portfolios like pensions and 401(k)s, potentially causing disastrous consequences. The bill, a bipartisan proposal updated in September, aims to define digital assets and assign oversight roles to the SEC and CFTC, with Senators Lummis and Gillibrand planning a Senate vote soon.

(Source：The Block)