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Labor Unions Join Banking Industry in Opposition to Senate Crypto Bill, The Clarity Act
Five of the nation’s largest labor organizations are urging the Senate to vote against a pending cryptocurrency market structure bill, warning that the legislation would expose retirement accounts to digital asset volatility ahead of a key committee vote Thursday.
The AFL-CIO, Service Employees International Union, American Federation of Teachers, National Education Association, and American Federation of State, County and Municipal Employees sent letters and emails to Senate Banking Committee members, according to CNBC, which obtained the correspondence first.
The crypto industry takes ‘risks’
The groups wrote that the bill “jeopardizes the stability of workers’ retirement plans, including public pensions, and introduces significant volatility to retirement savings accounts.”
“This legislation invites the cryptocurrency industry to take outsized risks, knowing that if those risky bets do not pay off, it is working people and retirees, not crypto billionaires, who will pay the price,” the unions wrote in a joint letter to all senators.
The AFL-CIO, in a separate email to Banking Committee members, warned 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.”
The Senate Banking Committee is scheduled to mark up and vote on the bill Thursday. Despite months of bipartisan talks, it remains unclear whether any Democrats on the committee will vote in favor of the measure. Several lawmakers say the bill needs more work on ethics, conflict-of-interest, and security provisions.
Labor groups are not the sole source of opposition. The American Bankers Association has also pushed back on updated language in the bill concerning stablecoin holdings. ABA CEO Rob Nichols wrote to bank executives on May 10 that a provision barring cryptocurrency firms from paying yield on payment stablecoins remains a threat to traditional bank deposits, arguing it would “unnecessarily incentivize the flight of bank deposits.”
The crypto industry, in contrast, has backed the revised language, with Coinbase voicing support for the restriction.
Michael Saylor chimes in
Strategy Executive Chairman Michael Saylor took a position in favor of the legislation. In a post on X, Saylor wrote that the bill “would unlock the next wave of Digital Capital, Digital Credit, and Digital Equity in the U.S. and globally,” calling it a framework for “STRC-powered digital yield markets” and a signal of “institutional validation for BTC.”
The crypto industry has identified the bill as its top legislative priority this session. Whether that momentum carries through committee — and into a full Senate vote — now depends on resolving opposition from organized labor, traditional banks, and a block of Senate Democrats who have yet to commit their support.
This post Labor Unions Join Banking Industry in Opposition to Senate Crypto Bill, The Clarity Act first appeared on Bitcoin Magazine and is written by Micah Zimmerman.
