Overview
- In a Dec. 8 letter, the American Federation of Teachers asked the Senate Banking Committee to scrap the Responsible Financial Innovation Act, calling it “as irresponsible as it is reckless” and warning of risks to pensions and the broader economy.
- The union says the draft would allow companies to tokenize their stock and sidestep registration and reporting rules, eroding long‑standing securities protections.
- Opposition now includes the AFL‑CIO and nearly 200 consumer and advocacy groups, with critics also cautioning that a federal regime could preempt state anti‑fraud protections.
- Bill sponsors led by Sen. Cynthia Lummis plan to circulate a revised draft by week’s end and seek a markup next week, though support and timing are uncertain after new Democratic counteroffers and visible industry splits.
- Key Democrats have raised concerns over the SEC‑CFTC jurisdictional balance and unresolved questions about regulator governance, adding to doubts about the bill’s path forward.