Teachers union warns crypto market structure bill could endanger US retirement savings
A major US teachers union has warned that new crypto market structure legislation in the Senate could put trillions of dollars in retirement savings at risk, drawing sharp attention across crypto news outlets and among the crypto pur community. The American Federation of Teachers (AFT) argues that the proposed bill treats digital assets as “stable and mainstream” investments despite what it views as fundamentally higher risks compared with traditional pension holdings.
AFT opposes Senate crypto market structure bill
In a letter sent to Republican and Democratic leaders on the Senate Banking Committee, the AFT said it opposes passage of the Responsible Financial Innovation Act, a digital asset market structure bill pitched as building on the House’s CLARITY Act framework. The union, which represents roughly 1.8 million educators and public-sector workers, claims the legislation poses “profound risks” to economic stability and retirement plans by failing to apply the same level of regulatory oversight to crypto assets and stablecoins that exists for other pension investments.
The AFT’s core concern is that, even though the CLARITY Act draft and related Senate Banking and Agriculture Committee versions do not explicitly authorize pensions or 401(k) plans to hold crypto, the new structure could allow digital assets to seep into portfolios indirectly. The union warns that “pensions and 401(k) plans will end up having unsafe assets even if they were invested in traditional securities,” because those securities (like ETFs or funds) could themselves gain exposure to crypto.
Wider labor movement fears: retirement funds and systemic risk
The AFT is not alone. The American Federation of Labor and Congress of Industrial Organizations (AFL‑CIO) has raised similar objections, arguing in an earlier letter that the market structure proposals could increase workers’ exposure by effectively green‑lighting retirement plans to hold what it deems a “risky asset.” These groups fear that a broad blessing of digital assets within regulated structures could amplify volatility and undermine financial stability if market downturns hit retirement portfolios.
Their concern is magnified by the size of the retirement system. Public pension funds, including teachers’ plans, collectively held more than 6.5 trillion dollars in assets as of Q2 2025, while total US retirement assets across all types of plans were about 45.8 trillion dollars. Even limited exposure to crypto assets through ETFs or structured products could therefore, transmit blockchain technology market shocks into the traditional retirement system on a large scale.
Trump administration pushes for more crypto in retirement plans
At the same time that unions are pressing the Senate to slow down, US President Donald Trump is moving in the opposite direction via executive action. In August, he signed an order directing the Labor Department to reconsider restrictions on alternative assets, explicitly including digital assets in 401(k) and other defined‑contribution plans. This policy push signals a desire to make crypto more accessible within tax‑advantaged retirement accounts, a development closely watched in crypto news circles.
Financial institutions are already responding. Morgan Stanley has reportedly allowed its advisers to suggest certain crypto funds as part of retirement portfolios for suitable clients, and some state‑run pension systems in Michigan and Wisconsin have gained indirect crypto exposure through digital asset‑linked exchange‑traded funds. These moves deepen the connection between blockchain technology markets and the traditional retirement system, even before any new Senate market structure bill is finalized.
Next steps for crypto pur investors watching Washington
For the crypto pur community, the clash between labor unions, Congress, and the White House underscores how politically sensitive crypto’s role in long-term savings has become. On one side, unions argue that prematurely “normalizing” crypto inside retirement structures could endanger workers who do not fully understand the volatility and unique risks of digital assets. On the other, policymakers and some asset managers see a chance to broaden investor choice and integrate crypto into mainstream financial products.
Senator Cynthia Lummis, one of the most vocal advocates for a comprehensive digital asset market structure bill, has suggested that an updated draft from the Senate Banking Committee could arrive before Congress breaks for the holidays, potentially with a markup hearing to follow. Until the final language is clear, both supporters and critics will continue to press their cases, knowing that any decision could reshape how blockchain-based assets fit into the retirement landscape for years to come.