A coalition of the nation’s largest labor organizations is urging the U.S. Senate to reject a landmark cryptocurrency “rules-of-the-road” bill.
The opposition comes just days before the Senate Banking Committee is scheduled to hold an initial vote this Thursday.
Groups including the AFL-CIO, SEIU, AFT, NEA, and AFSCME have sent a joint warning to senators, marking one of the most significant interventions by organized labor in the digital asset space to date.
The unions argue that the bill-often referred to as the Clarity Act-could jeopardize retirement assets by integrating them into the real economy without sufficient regulation could destabilize pensions and savings accounts.
In letters seen by CNBC, the groups claim the legislation invites “outsized risks” from crypto billionaires while leaving ordinary workers and retirees to “pay the price” for risky bets.
“This legislation invites the cryptocurrency industry to take outsized risks, knowing that if those risky bets do not pay off, it is working people and retirees, not crypto billionaires, who will pay the price,” the groups said in the letter.
Despite months of cross-party negotiations, it remains unclear if any Democrats will support the measure. Meanwhile, concerns persist regarding ethics provisions and the lack of final legislative text.
As reported by CNBC, Labor groups aren’t the ones fighting the bill. The banking industry is also lobbying against provisions they claim would allow crypto firms to offer interest-like rewards on stablecoins, potentially draining bank deposits.
Senate Banking Chair Tim Scott (R-SC) intends to move the bill to a markup on Thursday, though experts suggest it may move on a strictly party-line vote if Democratic concerns over anti-money laundering and consumer safeguards aren’t met.
The crypto industry has pushed back, saying the proposed agreement would ban such practices.
