A coalition of major labor unions sent a letter to every senator this week arguing that the CLARITY Act would jeopardize retirement plan stability and introduce volatility that could fall on workers rather than crypto executives. The AFL-CIO, SEIU, AFT, NEA, and AFSCME warned the legislation encourages the crypto industry to take “outsized risks” — and that without stronger safeguards, retirement savings could become a backstop for speculative bets. The Senate Banking Committee’s markup of the bill, originally scheduled for May 14, moved ahead as planned, with unions intensifying their opposition right up to the mark.
What the unions are saying
The letter, sent to every senator, argues the CLARITY Act threatens the stability of pension and 401(k) plans by essentially inviting crypto-related risk into mainstream retirement portfolios. The unions say the bill’s language lacks protections that would prevent losses from landing on workers. Separately, the AFL-CIO fired off an additional email to members of the Senate Banking Committee, making the same point: without sufficient regulation, embedding crypto could destabilize workers’ financial stability. The timing isn’t great for the bill’s backers — union opposition carries weight on Capitol Hill, especially among Democrats who are already wary of crypto-friendly legislation.
Banking trade groups push back too
It’s not just labor. Banking sector trade groups have been lobbying for revisions to key CLARITY Act provisions and the related GENIUS Act. They’re specifically opposing the stablecoin-rewards provision, which they argue could create new risks for the financial system. The banks are pushing for tighter guardrails, even as the crypto industry seeks more permissive rules. That puts the bill in a crossfire: unions want it scaled back to protect retirees, banks want changes to protect their own balance sheets, and crypto advocates want it to pass largely as written.
Bipartisan work on the text
Senators Tim Scott, Cynthia Lummis, and Thom Tillis released updated market structure bill language that reflects months of negotiations with Democrats. Chairman Scott said the CLARITY Act aims to offer clear rules, deliver certainty, safeguards, accountability, combat illicit finance, and keep the future of finance in the U.S. Lummis praised the updated text as the product of nearly a year of bipartisan work. But the unions’ letter suggests that bipartisanship hasn’t quieted the critics. With the markup now behind them, the bill heads to the full Senate floor — where the union campaign could complicate the math for swing votes.
