Key Concern: Unions warn that a proposed cryptocurrency bill could "jeopardize the stability of workers' retirement plans."
A coalition of major labor unions has called on senators to oppose a cryptocurrency bill scheduled for an initial vote by the Senate Banking Committee on Thursday. The groups include the AFL-CIO, Service Employees International Union (SEIU), American Federation of Teachers (AFT), National Education Association (NEA), and American Federation of State, County and Municipal Employees (AFSCME).
The Warning
In a letter seen by CNBC, the unions argued the legislation poses a direct threat to workers' financial security. The SEIU, AFT, NEA, and AFSCME stated in a letter sent to all senators on Friday that the bill "jeopardizes the stability of workers' retirement plans, including public pensions, and introduces significant volatility to retirement savings accounts."
The AFL-CIO sent a separate email to Banking Committee members, asserting that "absent sufficient regulation, embedding cryptocurrencies ... and other digital assets into the real economy will have a destabilizing effect, while benefiting issuers and platforms at the expense of working people."
Key Timing & Text
The Senate Banking Committee is scheduled to vote on the bill on Thursday. However, as of Monday evening, the committee had not released the final legislative text, adding to uncertainty surrounding the measure.
Additional Opposition
Beyond the labor concerns, the bill faces opposition from the banking industry over a specific provision. Banks are pushing back against a clause that would allow crypto companies to offer payments on stablecoin holdings similar to interest, arguing this could threaten bank deposits. The crypto industry has countered, claiming the proposed agreement would effectively ban such practices.
Political Outlook
It remains unclear if any Democrats will support the measure. Despite some collaboration with Republicans on the bill over recent months, ongoing concerns about security and ethics provisions have left the level of bipartisan support uncertain.