Key Points Major U.S. labor unions, including the AFL-CIO and the Service Employees International Union (SEIU), have warned Congress that granting legal status to cryptocurrencies could undermine the stability of the financial system. The U.S. Senate Banking Committee is scheduled to amend and vote on the bill this Thursday. Some Democratic lawmakers are collaborating with Republicans to advance this market structure legislation, but they acknowledge numerous remaining obstacles, including disputes over security and ethics provisions.
Major U.S. labor groups are urging senators to oppose a cryptocurrency industry regulatory framework bill set for its first vote this Thursday. Letters and emails obtained by CNBC show: The AFL-CIO, SEIU, the American Federation of Teachers, the National Education Association, and the American Federation of State, County and Municipal Employees jointly warned senators that the bill could jeopardize the retirement accounts of millions of workers. The unions' statement comes just before the Senate Banking Committee's scheduled vote on the cryptocurrency bill this Thursday. Although Democrats and Republicans have been collaborating for months to draft the bill, it remains uncertain whether any Democratic senators will vote in favor due to ongoing disputes over security and ethics provisions within the legislation. As of Monday evening, the Senate Banking Committee had not released the final legislative text of the bill. The SEIU, American Federation of Teachers, National Education Association, and American Federation of State, County and Municipal Employees sent a previously undisclosed letter to all senators on Friday, stating directly that the bill threatens the stability of workers' retirement plans, including public pensions, and poses significant volatility risks to retirement savings accounts. The letter stated: "This legislation amounts to condoning reckless high-risk speculation by the cryptocurrency industry. If these bets fail, it will be ordinary workers and retirees who ultimately pay the price, not the billionaires in the cryptocurrency industry." The AFL-CIO also sent an email to members of the Senate Banking Committee on Friday, stating: "Without adequate regulation, integrating cryptocurrencies and other digital assets into the real economy will create financial system instability; it will ultimately benefit issuers and trading platforms at the expense of ordinary workers." Labor groups are not the only ones strongly opposing the bill. The banking industry has also protested a provision in the bill, arguing that a clause allowing cryptocurrency companies to provide interest-like payments on stablecoin holdings could impact bank deposit businesses. The cryptocurrency industry has countered, stating that the proposed bill's provisions would inherently prohibit such practices.
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