U.S. Unions Sound the Alarm: “Senate Crypto Bill Could Trigger a New Financial Crisis”

Tensions in Washington are rising. The largest American labor federation, AFL-CIO, representing more than 12 million workers, has warned against a new Senate proposal to regulate cryptocurrencies, known as the Responsible Financial Innovation Act (RFIA). According to the unions, this is not innovation — it’s an open door to another financial meltdown, one that could shake the U.S. economy much like the 2008 crisis.

“A Threat to Pensions and Financial Stability” AFL-CIO Executive Director Jody Calemine warned that the proposed legislation could endanger not only financial stability but also the retirement funds and savings of millions of Americans. “This bill gives the crypto industry a free pass, without real oversight or worker protection,” said Calemine.

“If it passes, it could be the prelude to another economic storm.” The federation emphasized that RFIA allows FDIC-insured banks to trade and hold cryptocurrencies — a move that would increase exposure to losses and burden taxpayers.

Tokenization as a “Trojan Horse” for the Financial System A particularly controversial aspect of the proposal is its support for tokenized assets. AFL-CIO warns that it could create a parallel, unregulated market, where private companies could issue “digital shares” outside the supervision of the Securities and Exchange Commission (SEC). According to the unions, such a move would undermine transparency, weaken anti-fraud protections, and expose workers, investors, and retirees to new forms of risk. “Tokenized equities would bypass existing laws. This is a return to the era of unregulated derivatives — exactly what caused the 2008 collapse,” Calemine warned.

Parallels With the 2008 Crisis AFL-CIO reminded lawmakers that the 2008 financial collapse stemmed from insufficient oversight, excessive risk-taking, and bank deregulation. Calemine argued that RFIA repeats the same mistakes — only in the digital era. “Banks could speculate on crypto hedge funds just as they did with mortgage-backed derivatives — only faster and with even less oversight,” she explained. The unions further claim that the bill weakens the powers of the SEC and state regulators in supervising pension plans, effectively normalizing crypto investments in retirement funds — despite their notorious volatility.

A Divided Senate Originally introduced by Senators Cynthia Lummis and Kirsten Gillibrand, the RFIA is now seen as a rival to the CLARITY Act supported by the House of Representatives.

While proponents say RFIA provides a framework for innovation and clear rules, AFL-CIO argues that rules without safeguards are a trap.

Unions Urge the Senate: “Stop It Before It’s Too Late” In a letter to Congress, AFL-CIO called on lawmakers to reject the bill until clear measures are in place to protect investors, retirees, and the banking system. “The so-called Responsible Financial Innovation Act does the opposite. It doesn’t protect consumers — it protects speculators,” Calemine summarized. And while Wall Street debates whether RFIA is an opportunity or a ticking time bomb, one thing is clear:

Cryptocurrencies have become the center of a political storm — and this time, it’s not just about technology, but about the future of America’s retirement savings.

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