Teachers Union Warns Crypto Bill Could Threaten Pensions & Economy
The American Federation of Teachers (AFT), representing 1.8 million educators and public service workers, has urged the Senate to withdraw the Responsible Financial Innovation Act. The union warns the bill could expose pension funds to unregulated crypto assets, bypassing traditional securities protections.
AFT President Randi Weingarten highlighted concerns over tokenized stocks circumventing registration requirements, potentially exposing retirement savings to fraud and volatility. The letter to Senate Banking Committee leaders argues the legislation fails to address market manipulation or money laundering risks in digital asset markets.
While most public pension managers currently avoid crypto investments, the bill's loopholes might pressure funds toward these emerging—and potentially risky—asset classes. The debate underscores growing institutional tensions between financial innovation and investor protections.
