US Trade Union Criticizes Senate Crypto Bill as ’Poorly Regulated’

The American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) has sharply criticized a Senate bill aimed at regulating the cryptocurrency market, calling it a threat to workers and financial stability. The union argues the draft legislation lacks safeguards for retirement funds and pensions, potentially exposing them to volatile digital assets.

In a letter to lawmakers, AFL-CIO Director Jody Calemine warned the bill could mislead investors into believing cryptocurrencies are safe for retirement accounts. The proposal would allow 401(k) plans and pensions to include crypto assets without adequate protections.

The union raised alarms about systemic risks, particularly regarding provisions that WOULD permit banks to hold cryptocurrencies. Calemine compared the potential danger to the high-risk lending practices that precipitated the 2008 financial crisis, noting taxpayer-backed deposit insurance could be jeopardized.