AFT Warns Senate Crypto Bill Threatens Pension Funds and Economic Stability

The American Federation of Teachers has issued a stark warning against a proposed Senate bill aimed at regulating digital assets, arguing it could destabilize retirement systems and invite fraud. The union, representing 1.7 million workers, contends the legislation creates regulatory loopholes for tokenized securities—potentially exposing pension funds to high-risk crypto assets.

AFT President Randi Weingarten condemned the bill's provisions allowing blockchain-based stock tokenization outside traditional securities oversight. "This isn't innovation—it's an invitation to another financial crisis," she stated, noting parallels to pre-2008 deregulation. Pension managers could face pressure to allocate to volatile digital assets under the new framework.

The debate highlights growing tension between crypto's institutional adoption and worker protections. While blockchain proponents argue for modernized capital markets, labor groups see unchecked speculation threatening hard-earned retirement savings. The bill's fate may hinge on whether lawmakers prioritize market development or fiduciary safeguards.