Democrat Senate Criticizes RFIA Bill Over Crypto Risks and Corruption Concerns

Senate Democrats, led by Elizabeth Warren, have sharply criticized the Responsible Financial Innovation Act (RFIA), warning it could jeopardize retirement savings and amplify systemic risks in the crypto market. The bill, co-sponsored by Senators Cynthia Lummis and Kirsten Gillibrand, aims to establish a regulatory framework for digital assets but faces opposition over perceived gaps in investor protections and anti-corruption measures.

The Banking Committee's report highlights five critical flaws in the RFIA, positioning it against competing proposals like FIT21 and the CLARITY Act. With bipartisan origins but deepening partisan divides, the legislation remains in draft stages—its fate hinging on revisions to address concerns about market stability and presidential accountability.