The AFL-CIO, the largest federation of labor unions in the United States, has come out strongly against a new Senate crypto regulation bill, warning that it fails to protect workers and could expose the broader economy to major risks.
In a sharply worded letter, the union criticized the Responsible Financial Innovation Act (RFIA)—a bipartisan bill led by Senators Cynthia Lummis and Kirsten Gillibrand—saying it “provides the facade of regulation” while enabling the crypto industry to continue operating with minimal accountability.
A facade of regulation
Jody Calemine, the AFL-CIO’s policy director, argued that the bill would allow cryptocurrency companies to function “without sufficient oversight or meaningful safeguards.”
The union’s biggest concern centers around workers’ retirement savings. The AFL-CIO warned that the proposed legislation could open the door for 401(k) plans and pensions to invest in digital assets, calling such exposure a serious risk to the financial security of American workers.
Fears of a repeat of 2008
In its statement, the federation also drew parallels to the 2008 financial crisis, cautioning that the bill could pave the way for excessive speculation. The letter argued that allowing federally insured banks to engage in crypto-based hedge fund activities could be “even riskier” than the high-risk lending practices that contributed to the last major economic collapse.
‘A casino for crypto billionaires’
While the Senate crypto bill aims to establish the first comprehensive regulatory framework for digital assets, the AFL-CIO insists it does the opposite. The group claims the proposal favors big industry players at the expense of financial stability, describing it as “a casino for crypto billionaires” rather than a structure designed to protect everyday investors and workers.
The AFL-CIO has urged lawmakers to reject the RFIA in its current form, calling instead for stronger measures to protect retirement funds, increase accountability, and ensure that digital assets are integrated into the financial system safely and responsibly.
