Major US labor unions are ramping up opposition to a proposed cryptocurrency market structure bill, warning lawmakers that the legislation could expose millions of workers’ retirement savings to financial instability and risky market behavior.

The latest pushback comes ahead of a key vote scheduled Thursday in the Senate Banking Committee, where lawmakers are expected to debate and amend the crypto legislation. While some Democrats have spent months negotiating the measure alongside Republicans, significant disagreements remain over consumer protections, ethics standards and financial safeguards, News.Az reports, citing CNBC.

Among the organizations voicing concerns are AFL-CIO, Service Employees International Union, American Federation of Teachers, National Education Association and American Federation of State, County and Municipal Employees.

In letters sent to senators, the unions argued the proposed legislation could increase risks for pension funds and retirement accounts by further integrating cryptocurrency and digital assets into the broader financial system.

The groups warned that allowing crypto firms greater access to traditional finance without stronger oversight could create instability that would ultimately affect ordinary workers rather than wealthy investors or crypto executives.

According to the unions, the bill may encourage excessive risk-taking in the digital asset industry while leaving taxpayers, retirees and public pension systems vulnerable if the market faces another major collapse.

The opposition from labor organizations adds to resistance already coming from parts of the traditional banking industry. Some banking groups have criticized provisions related to stablecoins, arguing they could allow crypto firms to compete directly with banks by offering interest-like payments on digital asset holdings.

Crypto companies, however, have pushed back against those claims, saying the current proposal would actually restrict such practices rather than expand them.

The debate highlights the increasingly complicated political battle surrounding cryptocurrency regulation in Washington. While supporters say clearer rules are needed to bring oversight and legitimacy to the fast-growing industry, critics argue lawmakers are moving too quickly without fully addressing systemic financial risks.

At the center of the dispute is whether the legislation strikes the right balance between encouraging innovation and protecting consumers, financial institutions and retirement systems from volatility in the crypto market.

As of Monday evening, lawmakers had not yet released the final version of the Senate Banking Committee bill, leaving uncertainty over whether additional safeguards or ethics provisions could still be added before Thursday’s vote.

News.Az 

By Aysel Mammadzada