Teachers union claims risks to retirement funds in crypto market structure

The American Federation of Teachers (AFT) has formally opposed the Responsible Financial Innovation Act moving through the Senate, arguing that the crypto market structure legislation poses "profound risks" to the stability of educators' retirement security. In a letter to the Senate Banking Committee leaders, the AFT contended that the bill fails to establish a regulatory structure for crypto assets and stablecoins equivalent to that for traditional pension holdings, asserting that crypto is not stable or mainstream. The union fears that if passed, the legislation could lead to pensions and 401(k) plans holding unsafe assets, even when invested in traditional securities. This concern mirrors similar warnings previously issued by the AFL-CIO. Separately, former President Donald Trump has taken executive action to reevaluate restrictions on alternative assets, including digital assets, in defined-contribution plans, while some asset managers like Morgan Stanley are already signaling openness to including crypto funds in retirement portfolios.

(Source：Cointelegraph)