The AFL-CIO, the largest federation of unions in the United States, has voiced strong opposition to the latest legislative proposal on crypto assets in the Senate. Through a letter signed by its director of federal governmental affairs, George J. Sponson, the organization has issued serious criticism of the crypto bill, arguing that it weakens existing protections for investors and workers rather than strengthening them.
The document details the union’s objections to the Lummis-Gillibrand Responsible Financial Innovation Act. According to the AFL-CIO, the proposal is actually deregulation in disguise, caving to pressure from the crypto industry. They warn that the bill creates significant gaps in regulatory oversight. Furthermore, it undermines the authority of key agencies like the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), leaving workers and their savings more exposed to unnecessary risks.
The AFL-CIO’s stance is rooted in protecting the pension funds and savings of millions of affiliated workers. The federation argues that the digital asset industry has been plagued by fraud, scams, and extreme volatility that has harmed countless retail investors. They point out that the proposed legislation does not adequately address market manipulation. Therefore, it fails to resolve the inherent conflicts of interest in the sector, jeopardizing the capital of those who can least afford to lose it.
The Future of Crypto Regulation and its Implications
This criticism of the crypto bill introduces a significant political hurdle to its passage in Congress. The intervention of such an influential actor as the AFL-CIO, representing over 12.5 million workers, could slow down the legislative process. Likewise, it could force senators to reconsider key aspects of the proposal to ensure greater consumer protection. For investors, this regulatory uncertainty adds a layer of risk, as the future legal framework for the digital economy in the U.S. remains undefined.
The AFL-CIO’s letter underscores the growing politicization of the debate over cryptocurrency regulation in the United States. The progress of this bill will depend on its proponents’ ability to address these legitimate concerns convincingly. Meanwhile, the financial sector and consumer advocates will closely watch every step of the process. The final outcome will define the rules of the game for digital assets in the world’s largest economy for years to come.
