Overview
- The American Federation of Teachers told Senate Banking leaders to withdraw the Responsible Financial Innovation Act, calling it irresponsible and warning of profound risks to pensions and the broader economy.
- The letter argues the draft would strip existing crypto safeguards and let companies place stock on blockchains without standard registration or reporting, exposing 401(k)s and pensions to unsafe assets.
- Senator Cynthia Lummis said she plans to release a new draft by the end of the week with a push for committee markup next week, keeping the market-structure effort on a fast track.
- Organized labor and state officials have escalated objections, with the AFL-CIO opposing an earlier draft and Massachusetts Secretary of State William Galvin warning federal preemption could weaken state protections for savers.
- Prospects remain uncertain as crypto industry groups split over key provisions and Senator Cory Booker flags the lack of Democratic commissioners at the SEC and CFTC and a pending Supreme Court matter as potential deal-breakers.