US Teachers Federation Criticizes Cryptocurrency Legislation - ForkLog: Cryptocurrencies, AI, Singularity, Future

# Federation of Teachers in the USA Criticizes Crypto Legislation

The American Federation of Teachers (AFT) has urged the US Senate to withdraw the “Responsible Financial Innovations Act.” The organization pointed to risks to retirement savings and the country’s economy as a whole.

AFT President Randi Weingarten sent a letter to lawmakers criticizing the bipartisan initiative. In her view, the bill does not provide protection against the threats inherent in digital assets and stablecoins.

Weingarten emphasized that instead of necessary regulation, the document endangers families that are not even involved with cryptocurrencies.

The main concern of the union is the potential tokenization of shares on the blockchain, which would allow companies to bypass existing securities laws, avoid registration, and reporting requirements.

AFT believes that such a loophole could lead to unverified assets appearing in pension plans and 401(k) accounts. Even if portfolios consist of traditional instruments, the lack of oversight would pose risks to investors.

The authors of the letter also noted that the bill hardly addresses the issue of illegal activities in the industry. Regulatory gaps could trigger the “next financial crisis.”

The “Responsible Financial Innovations Act” was introduced by Senators Cynthia Lummis and Kirsten Gillibrand. The document defines digital assets and allocates supervisory functions between the SEC and CFTC. The Senate is expected to review an updated version of the bill next week.

Recall that the Commodity Futures Trading Commission launched a pilot program for using digital assets as collateral in derivatives markets.