Teachers’ Union Pushes Back Against Crypto Market Structure Bill

Highlights:

• The U.S. teachers’ union warns that the crypto market structure bill could harm pension funds.
• Critics argue the bill lacks sufficient safeguards against crypto market fraud.
• The bill could disrupt retirement security by allowing tokenized stock on the blockchain.

The American Federation of Teachers (AFT) is calling on the U.S. Senate to withdraw the controversial crypto market structure bill. The union, which represents 1.8 million members, claims that the bill presents a high risk to pension and retirement savings. The AFT President Randi Weingarten cautioned that the act would subject the working families to financial dangers and may trigger another financial crisis in the future.

In a letter to Senate leaders, Weingarten criticized the Responsible Financial Innovation Act because it did not safeguard the pension funds. The effect on workers with no direct engagement in cryptocurrency, who might be subjected to its dangers through their retirement plans, is of particular concern to the AFT. The most notable point that the union has presented is that the bill might allow unsafe digital assets. This consists of crypto and tokenized stocks to be included in the pension portfolios.

JUST IN: 🇺🇸 U.S. Teachers Union have asked the senate to abandon the crypto market structure bill! pic.twitter.com/clFpOyrFaj

— Coinvo (@Coinvo) December 10, 2025

Risks of Tokenization and Investor Protection Gaps

The primary concern that is raised by the AFT is that the bill allows non-crypto firms to tokenize their shares on the blockchain. With tokenization, such companies may avoid the existing securities regulations, registration, reporting, and intermediate regulation. This loophole, according to AFT, compromises the protection of investors and accountability to the regulators.

The union also cautioned that such moves would undermine traditional securities laws. The AFT, in their letter, elaborated that such a change would bring unsafe assets into the retirement funds, such as pensions and 401(k) plans. The funds typically invest in traditional securities, which provide security and stability to the workers. The union is concerned that the bill would expose workers’ savings to the unregulated and volatile crypto market.

Concerns Over Crypto Market Fraud and Illegal Activities

In addition to the tokenization, the AFT also criticized the bill due to its inability to tackle the current illegal activities in the crypto markets. They claim that the bill does not do much to prevent fraud or corruption. This has remained in the cryptocurrency industry. Weingarten believes this unregulated situation may result in even greater financial instability. This may potentially damage the retirement security for millions of American workers.

The AFT also noted that although the bill is supposed to regulate digital assets, it does so in a manner that undermines the existing regulatory frameworks on traditional securities. Weingarten described the bill as irresponsible and reckless, saying that it would destabilize retirement systems. This includes those based on government pension funds.

Support for the Bill and Divisions Among Stakeholders

Although the AFT and other entities raise concerns, the crypto market structure bill has its advocates. The bill was introduced by Senators Cynthia Lummis and Kirsten Gillibrand.  They argue that it would establish much-needed regulatory guidelines in the fast-growing cryptocurrency market. They believe that this framework is capable of protecting consumers as well as fostering innovation.

Most critics, however, including AFT, believe that the bill fails to cover enough to safeguard investors, particularly those who have retirement plans. The provision of the bill that allows tokenized assets to operate under current securities laws has raised some concerns.

Cynthia Lummis said on Tuesday that the Senate aims to share a draft of the bill before the end of this week. She also added that legislators are set to vote by next week.

🚨JUST IN: 🇺🇸 Senator Cynthia Lummis says it is her goal to share a draft of the crypto market structure bill by the end of this week.

Giving industry and both parties time to vet it ahead of next week’s markup. pic.twitter.com/GBYB9IdgZR

— DustyBC Crypto (@TheDustyBC) December 10, 2025