The largest US federation of trade unions has asked US Senators to reject the Senate’s version of the crypto market structure bill due to serious concerns and a lack of proper safeguards for workers.
Calemine affirmed that the bill “does not protect consumers, workers or the financial system,” arguing that RFIA’s treatment of crypto assets “poses risks to both retirement funds and to the overall financial stability of the U.S. economy.”
According to the letter, the current state of the legislation would enable the crypto industry to “operate in wider and deeper ways” without sufficient oversight or “meaningful safeguards,” which would potentially increase financial instability.
While currently most pensions do not carry crypto assets because of the risks associated with them, the bill provides the facade of regulation that may make cryptocurrency and associated assets more mainstream in portfolios. Passing this legislation will allow the proliferation of assets that investors will wrongly perceive as safe.
Additionally, the labor union considers that the legislation “codifies the tokenization of securities and assets such that private companies have a pathway to create a shadow public stock outside of SEC oversight.”
The letter concluded that the Senate’s version of the crypto market structure bill “substantially weakens” both federal and state enforcement tools to regulate digital assets.
The legislation has also received backlash from multiple state authorities, which have warned that it may “diminish their ability to pursue wrongdoers” and allow criminals to “wiggle out” of prosecution.
State regulators have proposed changes to the market structure bill, like adding language that specifies businesses to register and respond to their inquiries, and rejecting the provisions that redefine the investment contract test.
Similarly, the AFL-CIO suggested that working people need policies that effectively regulate financial markets and ensure their hard-earned retirement benefits are not endangered.
Ultimately, Calemine asked the Senate Banking Committee members to oppose the bill, and “make sure that the financial system is stable instead of creating a casino for crypto billionaires to make more profits.”
