Overview

• The AFL-CIO told Senate Banking leaders the Responsible Financial Innovation Act offers a 'facade of regulation' that weakens worker and consumer protections.
• The 182-page draft would let FDIC‑insured banks hold and trade crypto, which the union says heightens failure risk and threatens the Deposit Insurance Fund.
• The bill’s tokenization framework could enable 'shadow' versions of securities outside SEC oversight, the letter warns.
• Provisions would allow 401(k)s and pensions to hold crypto, increasing exposure to volatility rather than shielding retirement savings, according to the union.
• Sponsors Senators Cynthia Lummis and Kirsten Gillibrand are targeting a November floor vote as crypto industry figures dismiss the union’s concerns.