A major labor union in the United States, the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO), has voiced "serious concerns" regarding the Senate's proposed bill to regulate cryptocurrency, asserting that it lacks sufficient safeguards for workers and provides inadequate oversight of the sector. The AFL-CIO, the largest federation of trade unions in the US, claims the bill would expose workers' retirement funds to risky assets.

The AFL-CIO has been a vocal critic of legislation that could endanger the financial well-being of working people. In a letter to Congress from July 2025, the organization urged representatives to oppose the GENIUS Act (S. 1582) and the CLARITY Act (HR 3633), arguing that these bills would allow the crypto industry to operate without effective oversight, thereby posing risks to retirement funds and the overall financial stability of the U.S. economy. The union emphasizes its strong support for workers' retirement benefits and the necessity of protecting pension plans from fraud and unethical practices.

The labor federation argues that the Senate's crypto framework bill "provides the facade of regulation". The AFL-CIO suggests that the proposed regulations might create a false sense of security, potentially leading to the proliferation of assets that investors wrongly perceive as safe. The organization is particularly concerned about a loophole in the CLARITY Act (HR 3633) that could allow non-crypto companies to tokenize their stock on the blockchain, enabling them to evade existing securities regulatory frameworks. This, the AFL-CIO warns, would reduce reporting requirements and disclosures, jeopardizing pensions and 401k plans by exposing them to unsafe assets, even those invested in traditional securities.

Furthermore, the AFL-CIO believes the proposed legislation does little to curb fraud, illegal activity, and corruption prevalent in anonymous crypto markets. The organization argues that the bill could create an environment conducive to financial instability.

The concerns raised by the AFL-CIO add to the ongoing debate surrounding cryptocurrency regulation in the United States. While some lawmakers aim to create a regulatory framework that fosters innovation and protects consumers, others remain skeptical, citing risks associated with the volatile nature of crypto assets.

The Senate is expected to continue to debate the crypto bill. It remains to be seen whether the concerns raised by the AFL-CIO and other advocacy groups will lead to amendments that incorporate stronger safeguards for workers and investors.