Five major U.S. labor unions are pushing back against a proposed crypto market structure bill, warning lawmakers that the legislation could expose workers’ retirement savings to the risks and volatility tied to digital assets.
According to a CNBC report published Tuesday, the groups urged the U.S. Senate to reject the pending bill ahead of a key Senate Banking Committee markup scheduled for Thursday.
The organizations opposing the legislation include the AFL-CIO, Service Employees International Union, American Federation of Teachers, National Education Association, and American Federation of State, County and Municipal Employees.
Crypto legislation faces another hurdle: Labor unions https://t.co/6TuiTW39Vv
— CNBC (@CNBC) May 12, 2026
In a May 9 letter cited by CNBC, several of the unions warned that the bill could threaten the stability of retirement plans and public pensions by opening the door to greater crypto exposure. The groups argued that ordinary workers would ultimately carry the financial risks if digital asset markets experience sharp downturns.
The AFL-CIO also reportedly sent a separate message to members of the Senate Banking Committee, cautioning that integrating cryptocurrencies deeper into the financial system without stronger oversight could create more economic instability while mainly benefiting crypto firms and trading platforms.
Stablecoin rules draw pushback from banks
The crypto legislation is also facing criticism from the traditional banking sector, particularly over revised language tied to stablecoins.
The updated draft seeks to restrict companies from offering yield on payment stablecoins, a move that has received backing from crypto firms, including Coinbase and other industry participants.
However, American Bankers Association CEO Rob Nichols reportedly argued in a May 10 letter that the proposal still fails to address banks’ concerns. Nichols warned the measure could encourage consumers to move deposits away from traditional banks and into stablecoin products.
Michael Saylor backs the Clarity Act
While labor groups and banks raised concerns, crypto advocates continue to support the bill as a step toward broader digital asset adoption in the United States.
Michael Saylor publicly backed the Clarity Act in a post on X, describing the legislation as an important framework for expanding digital capital and digital credit markets.
Saylor said the bill could help drive institutional adoption of Bitcoin and support the growth of digital yield markets linked to blockchain networks and stablecoins.
Retirement fund concerns grow
Labor groups also tied their concerns to President Donald Trump’s February 2026 executive order, which opened the door for pension funds and retirement accounts to hold crypto assets.
The unions argue that combining the executive order with the proposed CLARITY Act could increase exposure to risky digital assets inside retirement portfolios. Senator Elizabeth Warren, the ranking member of the Senate Banking Committee, has repeatedly warned that the legislation could create what she described as a “tokenization loophole,” allowing blockchain-based financial products to avoid oversight from the U.S. Securities and Exchange Commission.
The American Federation of Teachers, which represents around 1.8 million members, previously criticized the bill in a December 2025 letter. The union said the legislation could expose working families to financial risk and threaten the long-term stability of retirement savings.
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