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The largest labor group is calling on senators to oppose the Code of the Road virtual currency bill, which is scheduled for its first vote on Thursday.
In letters and emails first seen by CNBC, the AFL-CIO, as well as the International Federation of Public Employees, the American Federation of Teachers, the National Education Association and the American Federation of State, County and Municipal Employees warned senators that the bill could jeopardize the retirement benefits of millions of workers.
The union push comes ahead of the Senate Banking Committee’s vote on the virtual currency bill, scheduled for Thursday. Although Democrats have been working with Republicans on the bill in recent months, it is unclear whether any Democrats will support it, given continued concerns about the bill’s security and ethics provisions. As of Monday night, the committee had not yet released the final legal text of the bill.
In an unreported letter sent to all senators on Friday, SEIU, AFT, NEA, and AFSCME said the bill “threatens the stability of workers’ retirement plans, including public pensions, and creates significant fluctuations in retirement savings accounts.”
“This law encourages the crypto industry to take big risks, but we know that if those risky bets don’t pay off, working people and retirees, not crypto billionaires, will pay the price,” the group said in a letter.
“Without adequate regulation, the incorporation of virtual currencies and other digital assets into the real economy will have destabilizing effects while benefiting issuers and platforms at the expense of workers,” the AFL-CIO said in an email to Banking Committee members on Friday as well.
Labor groups are not the only ones actively opposing the bill. The banking industry is also contesting a provision in the bill that threatens bank deposits by allowing crypto companies to offer interest-like payments on holdings of stablecoins. The crypto industry has pushed back, saying the proposed agreement would prohibit such activities.
