The American teachers' union has demanded the withdrawal of the Crypto Market Structure Act, fearing it would jeopardize pension security

The American Federation of Teachers (AFT) has formally submitted a petition to the U.S. Senate to withdraw the latest version of the Responsible Financial Innovation Act, citing the “serious risks” it could pose to the pension system, the wealth of working families and the economy as a whole. AFT represents 1.8 million members, and this voice is seen as one of the most direct voices against the impact of crypto legislation in the US public sector.

AFT Chairman Randi Weingarten pointed out in the letter that the proposal does not establish the regulatory protections needed to deal with the risks of crypto assets and stablecoins, but may expose pension portfolios that are not currently involved in crypto assets at all to market volatility and regulatory loopholes. She emphasized that once pension and 401(k) plans gain exposure to tokenized assets with inadequate regulation, it could pose a threat to the long-term financial security of retirees.

The union is particularly concerned that the bill allows non-crypto companies to tokenize shares for on-chain issuance, thereby bypassing the registration, disclosure, and regulatory processes required by existing securities laws and weakening investor protection mechanisms. The AFT warned that such vacancies could lead to “insecure assets flowing into traditional retirement products”, posing structural risks to the pension system.

In addition, the AFT pointed out that the bill is insufficient to combat illegal activities in the crypto market, and loopholes may lay hidden dangers for future financial crises. The letter emphasizes that there are still problems such as fraud, money laundering and regulatory arbitrage in the digital asset space, and any legislation must prioritize addressing systemic risks rather than deregulation.

The Responsible Financial Innovation Act is a bipartisan bill introduced by Senators Cynthia Lummis and Kirsten Gillibrand to establish a regulatory framework for crypto assets, stablecoins, and digital payment architectures. The latest draft, released in September, seeks to clarify the regulatory boundaries between the SEC and the CFTC and define digital asset classes. Lummis said the Senate plans to release the new draft this weekend and vote next week.

The incident has sparked renewed concern in the crypto industry, traditional financial institutions and regulators, and whether pensions should be allowed to access tokenized assets and crypto products is becoming a key issue in the regulatory discussion in the United States. （The Block）