The American Federation of Teachers (AFT) has formally added its voice to the growing opposition to the proposed Cryptocurrency Market Structure Act, urging the Senate Banking Committee to reconsider the bill.
In a letter obtained by CNBC, AFT President Randi Weingarten called the bill “as irresponsible as it is irresponsible,” citing the proposed risks it poses to working families’ pensions and the economy as a whole.
AFT points out loopholes in cryptocurrency law
Weingarten wrote in a letter with Senate Banking Committee Chairman Tim Scott and Ranking Member Elizabeth Warren, known for her consistent skepticism of digital assets. expressed Serious concerns about the impact of the proposed legislation.
He said the current draft gave the AFT “deep concerns” about the risks posed to retirement schemes, including unions’ own pensions. Weingarten argued that pushing for crypto legislation could open the door to “widespread fraud” and “unethical practices” in retirement plans.
Weingarten argued that the bill “misleadingly” portrays cryptocurrencies as stable and mainstream. volatility. Instead of providing the necessary safeguards, she insisted. “If passed, it would make many assets less secure and pose a problem for retirement investing in general,” she said.
Among the specific concerns raised by the AFT was a provision that would allow non-cryptocurrency companies to issue stock on the blockchain, thereby circumventing the existing regulatory framework for securities.
Weingarten warned that this loophole and the resulting erosion of traditional securities laws could have “dire consequences.” she has a pension 401(k) plan Even nominally traditional securities can lead to investing in unsafe assets.
She also criticized the bill for not doing enough to address the fraud and illegal activity that Weingarten believes remains prevalent in the cryptocurrency market, calling it “irresponsible” and “reckless.”
Delays and growing concerns
In his letter, Weingarten also emphasized that the bill, if passed, could set the stage for the next financial crisis. AFT’s position is consistent with concerns previously expressed by the AFL-CIO, the nation’s largest labor union, which also opposed the draft cryptocurrency bill in October.
Echoing Weingarten’s opposition, other Democratic senators, including Warren, also caused concern Concerning the balance of regulatory oversight between the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC).
Massachusetts Secretary of State William Galvin reiterated those concerns in a letter, stressing that the proposed legislation could remove important parts of the financial industry from state oversight and pose risks to millions of savers.
Progress on the Senate version of the Cryptocurrency Market Structure Act is facing delays, in part due to the longest government shutdown in recent U.S. history.
Senator Lummis recently provided insight into a potential timeline. show Her goal is to share a new draft by the end of the week. He plans to allow both the crypto industry and lawmakers from both parties to consider the draft before moving forward with the price increase next week.
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