Major labor unions in the United States are warning senators that an upcoming bill could jeopardize retirement accounts for millions of workers, CNBC reported on May 12.
The American Federation of Labor and Congress of Industrial Organizations (AFL-CIO), Service Employees International Union, American Federation of Teachers, National Education Association, and the American Federation of State, County and Municipal Employees are urging senators to oppose the CLARITY Act ahead of the initial vote on May 14.
Related: Treasury Secretary Bessent warns Coinbase is blocking major legislation
The CLARITY Act is a comprehensive crypto bill that creates a regulatory framework for digital assets. It formally divides oversight, giving the Securities and Exchange Commission (SEC) authority over crypto securities and expanding Commodity Futures Trading Commission (CFTC) authority over crypto commodities.
On May 14, the Senate Banking Committee is scheduled to hold a markup on the legislation.
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Labor unions warn of unstability in retirement plans
The labor unions said the bill "jeopardizes the stability of workers' retirement plans, including public pensions, and introduces significant volatility to retirement savings accounts."
"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,"the letter, read by CNBC, said.
The AFL-CIO warned in its letter to senators that cryptocurrencies have "absent sufficient regulation" and embedding them into the real economy will have a "destabilizing effect." The move will benefit issuers and platforms at the "expense of working people," the group warned.
The opposition from labor unions comes after the banking lobby fighting a weeks-long battle to remove stablecoin yields in the legislation.
There is a compromise now, which bans rewards on passive stablecoin holdings that are "economically or functionally equivalent" to deposit interest but allows rewards for stablecoin activities like trading, transactions or staking.
Related: Ripple CEO reveals CLARITY Act deadline
This story was originally published by TheStreet on May 12, 2026, where it first appeared in the MARKETS section. Add TheStreet as a Preferred Source by clicking here.
