The American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) denounced the Senate crypto bill on 8 October 2025 as a “regulatory façade.” The federation warns it endangers the retirement savings of millions of workers and rewrites rules for banks, investors, and regulators, arguing that several clauses would let workplace plans hold more digital assets while removing long-standing protections.
The federation targets three draft laws: the Responsible Financial Innovation Act (RFIA), the GENIUS Act (stablecoin law), and the CLARITY Act. These texts represent the main attempt to build a federal digital asset regime. AFL-CIO’s critique centers on how these proposals would expand digital asset exposure in retirement plans and shift the balance of regulatory power.
AFL-CIO lists three dangers: it argues that retirement plans would face added losses, citing a note that crypto holders are 7.4 percent more likely to tap savings early due to hardship; it warns that FDIC-insured banks would gain clearance to trade cryptoassets directly; and it cautions that tokenized securities could fall outside SEC review.
The federation also expects a power shift in which the CFTC would take the lead over the SEC for certain primary market deals, a change it says would open gaps that wrongdoers can exploit and weaken both federal and state enforcement.
Context and impact of the Senate crypto bill
The federation’s stance could mobilize members and sway lawmakers, potentially intensifying debate in Congress and slipping the legislative calendar as negotiations stretch.
If workplace plans hold more digital assets, 401(k) balances could face added volatility, amplifying the likelihood of drawdowns and early hardship withdrawals.
Divided duties between the SEC and the CFTC could dilute fraud patrols, creating gray areas that complicate enforcement and investor protection.
Ganting FDIC-backed firms a green light to trade crypto would revive arguments over systemic risk and the appropriate perimeter for insured institutions.
The federation concludes that the drafts lack “meaningful labor protections” and calls for concrete rules to ensure innovation does not erode worker financial security. Senator Cynthia Lummis and other lawmakers still aim to pass a full framework in 2026, while AFL-CIO’s organized opposition injects uncertainty that could stall or reshape that schedule.
In practical terms, the AFL-CIO’s objections signal tougher scrutiny for the Senate’s digital asset agenda, with retirement safeguards and regulatory clarity emerging as the pivotal conditions for any path forward.
