- Labor unions have urged senators to oppose the rules-of-the-road crypto bill ahead of Thursday’s vote.
- The unions say the legislation lacks safeguards and endangers worker pensions through added volatility.
- This adds another hurdle to passing the crypto market structure bill and may signal continued scrutiny.
Major U.S. labor unions, including the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO), Service Employees International Union (SEIU), and others, are urging senators to oppose the Digital Asset Market Clarity Act (CLARITY Act) ahead of Thursday’s critical Senate Banking Committee vote.
Labor Unions Urge Senate to Block Crypto Bill
According to sources, five major U.S. labor unions, including the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO), Service Employees International Union (SEIU), American Federation of Teachers (AFT), National Education Association (NEA), and American Federation of State, County and Municipal Employees (AFSCME), have sent letters to senators urging them to oppose a rules-of-the-road crypto bill scheduled for a markup vote in the Senate Banking Committee on Thursday, May 14.
Why the Crypto Bill Faces Labor Unions’ Opposition
Notably, the labor unions are opposing the CLARITY Act because they view cryptocurrency as a direct competitor for the capital held in workers’ pension funds and 401(k) plans, the largest pools of long-duration retirement money in the United States.
The bill would legitimize a highly volatile asset class, potentially diverting capital away from traditional investments and exposing millions of workers’ retirement savings to unnecessary risk. The unions stated, “This legislation invites the cryptocurrency industry to take outsized risks, knowing that if those risky bets do not pay off, it is working people and retirees, not crypto billionaires, who will pay the price.”
Although Democrats have collaborated with Republicans on the legislation in recent months, uncertainty remains over whether any Democratic senators will ultimately support it, amid continued concerns about the bill’s security safeguards and ethics provisions.
What’s Next for the CLARITY Act?
This union opposition adds another major obstacle to the long-stalled CLARITY Act ahead of the Senate Banking Committee’s scheduled markup vote on May 14. Broader industry and regulatory developments may face continued scrutiny from labor groups and traditional banks as lawmakers attempt to balance crypto innovation with financial stability.
Senator Tim Scott (R-SC), the committee chairman, has confirmed the markup will proceed despite resistance from labor unions and renewed lobbying pressure from major banks. If the committee advances the bill, likely along party lines with limited bipartisan backing, it could move to the Senate floor as early as June and approach potential passage before the summer recess, marking a key milestone for U.S. crypto regulation.
This would strengthen CFTC oversight for non-security digital assets, introduce stablecoin reserve requirements, and clarify DeFi and custody rules, reducing regulatory uncertainty and supporting institutional adoption.
Furthermore, if the bill stalls, it could trigger continued regulatory uncertainty, heightened price volatility, and a risk of the issue being pushed into 2027 or beyond if a new Congress resets progress. Markets are increasingly pricing the legislation as a near-term catalyst, making post-markup reactions critical to watch closely.
Related: Why Is the CLARITY Act Still Stalled? Top Reasons Why!
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