The largest federation of US trade unions says it has a “serious concern” about the Senate’s draft bill to repair the crypto, saying it lacks workers’ protection and poor sector regulation.
The American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) opposes the Responsible Financial Innovation Act (RFIA), dispute with a Letter At the Senate Banking Committee on Tuesday it would bring significant risks to workers and financial systems.
Treatment of the bill of crypto assets “poses risks to both retirement funds and the general financial stability of the US economic economy,” said AFL-CIO director Jody Calemine.
He added that the bill would provide the crypto industry to “work in greater and deeper ways in our financial system without adequate administration or significant care.”
Senator Cynthia Lummis and Kirsten Gillibrand original introduced RFIA in 2022 and changed it earlier this year. The Senate Banking Committee is Bill As an alternative approach to regulating crypto with a different scope and regulation stress, instead of promoting The Clarity Act, a market structure bill was passed at home in July.
Protecting workers and pensions
Calemine said the AFL-CIO “supports efforts to update regulations regulations to better protect workers from the volatility of this property class,” but the bill “provides a regulation.”
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He added that instead of insulating workers from the volatility of crypto, the bill would “increase workers’ exposure through greenlighting retirement plans such as 401 (K) s and pension to handle this dangerous possession.”
More systematic risks
Calemine also claimed that the taxpayer’s deposit insurance funding, which protects consumer bank deposits, will be subject to greater risk if banks are allowed to take care of crypto.
He also said that the law “Coding tokenization of security and properties” that private companies have a path to “create a shadow in public stock” outside the Securities and Exchange Commission oversight.
AFL-CIO headquarters in Washington, DC. Source: AFL-CIO
2008 financial crisis Redux
AFL-CIO compares these potential risks to the causes of 2008 financial crisiswhich is a high risk of lending commercial banks.
“Banks that engage in crypto -based hedge funding activity, which will be allowed under this regime, may be higher than some of the dangerous financial activities conducted before the financial crisis in 2008.”
Calemine concluded with a call to oppose responsible law in the innovation financial, which is still a draft of the discussion and has not been formally introduced.
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