Catenaa, Tuesday, December 16, 2025-The American Federation of Teachers urged the U.S. Senate Monday to withdraw the Responsible Financial Innovation Act, warning that the proposal poses risks to pensions and the broader economy.
The union, representing 1.8 million members, said the bill fails to provide sufficient regulatory protections for crypto assets and stablecoins.
In a letter obtained by CNBC, AFT President Randi Weingarten said the bill could expose working families to economic risk and jeopardize retirement security.
The union highlighted concerns that non-crypto companies could tokenize their stock on the blockchain, potentially bypassing established securities laws, including registration, reporting and intermediary oversight.
Weingarten said such loopholes could allow unsafe assets into pension and 401(k) portfolios even if invested in traditional securities.
The letter also cautioned that the bill does little to address illegal activity in crypto markets and could contribute to systemic financial risk.
The bipartisan bill, first introduced in 2022 and updated with a Senate Banking Committee discussion draft in September, seeks to define digital assets and payment stablecoins while assigning oversight to the SEC and CFTC.
Senators Cynthia Lummis and Kirsten Gillibrand, sponsors of the bill, said the Senate plans to circulate a draft this week and hold a vote next week.
The teachers union’s opposition adds pressure amid ongoing debate over how digital assets should be regulated in the US.
