America’s Leading Teachers’ Union Gives Crypto Warning Related To Pensions
The AFT warned that the proposed RFIA bill could endanger teacher pension funds by legitimizing risky crypto assets.Summary
The American Federation of Teachers (AFT), representing over 1.8 million educators, sent a letter to Senate Banking Committee leaders expressing serious concerns about the Responsible Financial Innovation Act (RFIA). The union argues that the proposed legislation would legitimize crypto markets without providing necessary regulatory clarity or investor protections, thereby increasing the risk of fraud and instability for teachers' pension funds.
A central issue is the RFIA's treatment of blockchain-based securities, which the AFT fears would allow companies to list stock on a blockchain, bypassing traditional securities regulations, weakening safeguards like mandatory disclosures and intermediary oversight. The union contends this blurs the line between regulated and unregulated assets, exposing retirement portfolios to greater volatility.
These concerns echo similar warnings from the AFL-CIO and align with recent Democratic counteroffers during Senate debates on the RFIA, which also highlight loopholes regarding token classification, the need for clearer SEC review processes, and potential national security risks related to illicit finance.
(Source：BeInCrypto)