The American Federation of Teachers Writes Letter to Senate Opposing the "Cryptocurrency Market Structure Act," Which Would Bring Digital Assets into Pension Funds

On Monday, December 10, the American Federation of Teachers (AFT) submitted a petition to the U.S. Senate calling for the withdrawal of cryptocurrency market structure legislation, warning the proposal would pose "serious risks" to pensions and the broader U.S. economy. First obtained by CNBC, the letter notes the Responsible Financial Innovation Act lacks an adequate regulatory framework to address inherent risks in crypto assets and stablecoins. AFT President Randi Weingarten wrote: "This bill not only fails to deliver much-needed regulatory guardrails and common-sense protections—it would expose working families (who currently have no crypto exposure) to economic risk and threaten their retirement security." The 1.8 million-member union emphasized its core mission is to maintain a sound, reliable pension system for retirees. Its opposition stems from concern the bill could clear the way for digital assets to enter retirement portfolios—including AFT’s own pensions. Weingarten flagged a critical concern: the bill could let non-crypto firms tokenize equity via blockchain, potentially circumventing existing securities laws. This would bypass requirements like registration, disclosure, and intermediary oversight—weakening investor protections and regulatory accountability. "Weingarten warned: "This loophole and erosion of traditional securities laws will have catastrophic consequences. Even if retirement funds and 401(k)s invest in traditional securities, they could end up holding unsafe assets." Beyond pensions, the letter also calls out the bill’s insufficient oversight of illicit crypto activity, warning its loopholes could plant the seeds of the "next financial crisis."