Major Labor Unions Oppose Senate Crypto Bill Over Retirement Account Risks

The nation’s largest labor unions are urging the Senate to vote against a pending cryptocurrency market structure bill, The Clarity Act, warning that the legislation would expose retirement accounts to digital asset volatility ahead of a key committee vote on Thursday.

According to CNBC, which obtained the correspondence first, the AFL-CIO, Service Employees International Union (SEIU), 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 opposing the bill.

Labor Unions Warn of Retirement Account Risks

The unions argued in a joint letter to all senators 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 AFL-CIO separately warned in an email to Banking Committee members 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.”

Senate Banking Committee Vote Looms

The Senate Banking Committee is scheduled to mark up and vote on the bill on Thursday. Despite months of bipartisan talks, it remains unclear whether any Democrats on the committee will support the measure. Several lawmakers have indicated the bill requires further revisions, particularly on ethics, conflict-of-interest, and security provisions.

Banking Industry Raises Concerns Over Stablecoin Provisions

Labor groups are not the only opponents. The American Bankers Association (ABA) has also pushed back on updated language in the bill regarding stablecoin holdings. On May 10, ABA CEO Rob Nichols wrote to bank executives that a provision barring cryptocurrency firms from paying yield on payment stablecoins remains a threat to traditional bank deposits. Nichols argued the provision would “unnecessarily incentivize the flight of bank deposits.”

The crypto industry, however, has supported the revised language, with Coinbase voicing approval for the restriction.

Crypto Industry Backs the Bill

In contrast to labor and banking opposition, the crypto industry has identified the bill as its top legislative priority this session. Michael Saylor, Strategy Executive Chairman of MicroStrategy, publicly endorsed the legislation in a post on X (formerly Twitter). 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.”

Outlook for The Clarity Act

Whether the bill gains enough momentum to pass the committee—and eventually the full Senate—now hinges on resolving opposition from organized labor, traditional banks, and a bloc of Senate Democrats who have not yet committed their support.