US teachers' union opposes bill allowing crypto in retirement funds

The American Federation of Teachers (AFT), the second-largest teachers' union in the U.S., is opposing the Senate Banking Committee's Responsible Financial Innovation Act (RFIA), CNBC reported. The AFT argued that the bill treats cryptocurrencies as stable, mainstream financial instruments, a view it says is disconnected from reality and could weaken existing securities regulations. The union expressed particular concern that allowing non-crypto companies to tokenize their stock on a blockchain could create loopholes in securities laws, enabling these assets to be included in pension and 401(k) plans. The AFT asserted that advancing the bill is premature, citing the continued prevalence of fraud and illegal activities in the crypto market. The Responsible Financial Innovation Act aims to clarify regulatory authority over digital assets, expand participation for banks and financial institutions, and permit cryptocurrency investments within retirement accounts.