Key Takeaways
- The American Teachers Union calls for shelving the Market Structure bill, deeming it risky.
- The AFT pointed to the lack of safeguards and exposure to non-secure companies and tokens.
- The Market Structure bill has undergone several iterations over the past six months, and a Senate vote is set for early 2026.
The American Federation of Teachers (AFT) wrote to the Senate demanding that lawmakers abandon the Responsible Financial Innovation Act.
The bill in question is often referred to in shorthand as the Cryptocurrency Market Structure Act.
It is the U.S. Senate’s primary legislative proposal aimed at creating a comprehensive federal regulatory framework for the crypto and digital asset markets.
Why Are Teachers Against the Bill?
The AFT, a major labor union representing over 1.7 million educators and school staff, sent a strongly worded letter to Senate leaders, including Majority Leader Chuck Schumer and Minority Leader Mitch McConnell, urging them to abandon the bill entirely.
The letter, written by AFT President Randi Weingarten, claimed that the legislation poses profound risks to the pensions of working families and the overall stability of the economy.
The AFT argued that the proposed law would expose pension funds—many of which invest in traditional securities on behalf of public employees and teachers—to “unsafe assets” and fraud in the unstable cryptocurrency market.
Weingarten noted:
“Beyond the threat to the retirement security of working families, the legislation being considered by the committee does little to curb the illegal activity, fraud, and corruption that continues to be prevalent in anonymous crypto markets.”
She added:
“It is as irresponsible as it is reckless. We believe that if enacted, this bill has the potential to lay the groundwork for the next financial crisis.”
Weingarten said one of their biggest concerns is that the bill would allow non-crypto companies to tokenize their stock on the blockchain, potentially sidestepping established securities laws.
She argued that this could bypass requirements for registration, reporting, and intermediary regulation, limiting avenues for investor protection and regulatory accountability.
The demand aligns with the AFT’s long-standing advocacy for robust financial regulations, particularly given that many of its members rely on public pension systems that invest in stock markets.
The Market Structure Bill Overview
The Market Structure bill is one of two key pieces of legislation proposed under the Donald Trump administration.
The STABLE Act was the other major bill, which passed after multiple iterations.
The Market Structure bill offers clear regulations for jurisdictional clarity, operational frameworks, and tokenization of traditional assets.
The proposed crypto market legislation has been in contentious negotiations for months, with the prospect of a Senate vote potentially pushed to 2026 amid divisions among crypto stakeholders over issues such as the treatment of decentralized finance (DeFi) and government access to peer-to-peer transactions.
Amid broad industry support for the legislation, a number of critics have pointed to the stripping away of key oversight mechanisms—potentially permitting companies to bypass standard SEC rules by shifting crypto assets to decentralized platforms.
This could heighten systemic vulnerabilities, making it easier for bad actors to exploit gaps in regulation.
Top Trending Crypto Articles
Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
His coverage spans major industry events, including the high-profile collapses of FTX, Three Arrows Capital (3AC), and LUNA, offering readers insightful analyses of their regulatory and market implications. Prashant’s technical background enables him to bridge the gap between intricate blockchain technology and its real-world applications, making his work accessible to novices and experts.
Beyond his professional pursuits, Prashant is an avid music enthusiast, often exploring diverse genres to unwind. A sports lover, he has a particular passion for cricket and frequently engages in discussions about the game. His multifaceted interests and sharp journalistic instincts make him a valuable contributor to CCN, where he continues shaping the crypto landscape's narrative.
