The American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) has launched a significant critique against proposed cryptocurrency legislation currently advancing through the Senate. The labor federation characterizes the regulatory framework as providing merely superficial oversight while enabling substantial institutional exposure to digital assets.
This opposition emerges as Senate leadership accelerates consideration of the Financial Innovation and Technology Act ahead of anticipated year-end voting. The contentious legislation would authorize traditional banking institutions to engage in cryptocurrency trading activities while maintaining Federal Deposit Insurance Corporation backing for these ventures.
Labor representatives argue the proposed measures create an illusion of consumer protection while fundamentally permitting federally-insured financial entities to speculate in volatile digital asset markets. The AFL-CIO maintains this approach potentially jeopardizes both depositor funds and financial system stability by extending government-backed security to inherently risky crypto transactions.
The timing of this legislative push coincides with increased institutional interest in digital assets, though labor advocates caution against regulatory frameworks they believe prioritize market access over substantive safeguards. As congressional deliberations intensify, the federation’s position highlights growing concerns about balancing innovation with proven financial protections.
