U.S. labor union: 'Senate virtual-asset bill has no meaningful safeguards'

The AFL-CIO said the Senate's draft bill to regulate virtual assets (cryptocurrencies) lacks safeguards.

On the 8th (Korean time), according to crypto outlet Cointelegraph, the AFL-CIO sent a letter to the Senate Banking Committee asserting that 'the Responsible Financial Innovation Act (RFIA) would pose significant risks to workers and the financial system.'

Jodi Keylermin, AFL-CIO policy director, criticized, 'This bill would allow the virtual-asset industry to influence the financial system freely without substantive oversight,' adding, 'It's only for show and has no real protective measures.'

The RFIA was first introduced in 2022 by Senators Cynthia Lummis and Kirsten Gillibrand and contains comprehensive regulatory provisions for digital assets.

The AFL-CIO pointed out that the bill would particularly increase the risk of retirees' funds, such as 401K or pensions, being exposed to virtual-asset volatility. Keylermin said, 'Rather than protecting workers, it legalizes holding risky assets and expands exposure,' and added, 'If banks are allowed to custody virtual assets, the deposit insurance fund will bear a greater burden.'

She also warned, 'It could open the door for private firms to recklessly issue shares through tokenization, which could pose risks greater than in 2008,' and urged, 'The RFIA currently under discussion should not be passed by the Senate.'