Major US Labor Unions Urge Senate to Reject Crypto Market-Structure Bill

TLDR:

• Major US labor unions sent letters urging senators to reject the crypto market-structure bill on Friday.
• The AFL-CIO warned that embedding crypto into the real economy could destabilize markets without proper regulation.
• The Senate Banking Committee is set to amend and vote on the crypto bill Thursday amid unresolved ethics concerns.
• The banking industry is also opposing a stablecoin provision they say threatens traditional deposit systems nationwide.

Major US labor unions are pushing senators to reject a crypto market-structure bill ahead of a Senate Banking Committee vote on Thursday.

Groups including the AFL-CIO, SEIU, American Federation of Teachers, National Education Association, and AFSCME signed onto the effort.

Their concern centers on worker retirement accounts and public pensions. They argue the bill could expose millions of Americans to crypto market volatility.

Labor Groups Warn of Risks to Worker Retirement Accounts

The SEIU, AFT, NEA, and AFSCME sent a letter to all senators on Friday. The letter stated the bill “jeopardizes the stability of workers’ retirement plans, including public pensions.”

They also warned it introduces volatility into retirement savings accounts. This marks a notable move by organized labor into the crypto policy debate.

The unions argued that crypto companies would be allowed to take outsized risks under the bill. They wrote that “if those risky bets do not pay off, it is working people and retirees, not crypto billionaires, who will pay the price.”

That framing has resonated with progressive lawmakers on the committee. It also draws a sharp contrast between institutional crypto players and everyday retirement savers.

The AFL-CIO separately emailed Banking Committee members on Friday as well. The group warned that “embedding cryptocurrencies and other digital assets into the real economy will have a destabilizing effect.”

They added the bill benefits issuers and platforms “at the expense of working people.” Their message was direct: the bill tips the scale away from everyday Americans.

As of Monday evening, the committee had not yet released the final legislative text. That delay added uncertainty around whether any Democrats would back the measure.

Some had been working with Republicans on the bill for months. However, ongoing concerns about security and ethics provisions remain unresolved.

Banking Industry and Crypto Sector Clash Over Stablecoin Provision

Labor groups are not the only ones opposing the crypto market-structure bill. The banking industry is also actively fighting one specific provision.

That clause would allow crypto companies to offer payment on stablecoin holdings, similar to interest. Banks say this threatens traditional deposit systems.

The crypto industry has pushed back strongly against the banking sector’s interpretation. Industry representatives say the proposed agreement would actually ban such interest-like practices on stablecoins.

The disagreement reflects broader tensions between legacy finance and digital asset markets. Both sides are lobbying committee members ahead of Thursday’s vote.

The Senate Banking Committee is expected to amend the bill before any formal vote takes place. The final shape of the legislation remains unclear given the number of competing concerns.

Democrats have signaled they need stronger safety and ethics language before lending their support. Republicans, meanwhile, are pushing to advance the bill with or without bipartisan backing.

The outcome of Thursday’s committee vote will likely shape the broader crypto regulatory debate heading into the second half of the year.

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