Market Structure Bill Could Trigger Financial Crisis

The American Federation of Lecturers (AFT), a labor union representing 1.8 million members, urged US lawmakers to rethink the crypto market construction invoice, warning it might result in the following monetary disaster. 

In a Dec. 8 letter despatched to the Senate Banking Committee Chairman Tim Scott and Rating Member Elizabeth Warren, AFT President Randi Weingarten mentioned the Accountable Monetary Innovation Act presents “profound dangers to the pensions of working households and the general stability of the financial system.”

“We consider that if enacted, this invoice has the potential to put the groundwork for the following monetary disaster,” she mentioned.

Crypto Market Construction Invoice May Open The Floodgates To Widespread Fraud, Warns AFT

Weingarten expressed the AFT’s wide-ranging considerations over the invoice, together with that if it passes it might open the floodgates to fraud and unethical practices throughout retirement plans. 

One of many important considerations with the laws is that it “pretends that crypto belongings are steady and mainstream, and they aren’t,” Weingarten mentioned within the letter. 

“Somewhat than simply being silent on crypto, this invoice strips the few safeguards that exist for crypto and erodes many protections for conventional securities,” she added. 

The laws might find yourself undercutting “the protection of many belongings and trigger issues throughout retirement investments,” she mentioned,  

She mentioned the union is especially alarmed that the laws would enable non-crypto corporations to place their inventory on the blockchain and ”evade your entire securities regulatory framework that presently exists.”

This might enable crypto to utterly keep away from necessities that defend traders in securities, reminiscent of registration, reporting and regulation of intermediaries that facilitate transactions, she mentioned. 

Tokenized inventory market overview (Supply: RWA.xyz)

The tokenization of shares has been one of many important considerations because the invoice positive factors momentum on Capitol Hill. It has additionally been a serious hurdle to getting help from Democrats, which will probably be wanted for passage. 

“This loophole and the erosion of conventional securities regulation may have disastrous penalties: Pensions and 401(ok) plans will find yourself having unsafe belongings even when they have been invested in conventional securities,” Weingarten mentioned. ”The laws being thought of by the committee does little to curb the criminal activity, fraud and corruption that continues to be prevalent in nameless crypto markets. It’s as irresponsible as it’s reckless.”

Senator Lummis Anticipates Markup Subsequent Week

The Accountable Monetary Innovation Act, which builds on a invoice that was handed by the Home of Representatives over the summer time, is co-sponsored by Senator Cynthia Lummis in addition to Senator Bernie Moreno and Chairman Scott. 

The proposed laws goals to create a construction to manage the crypto market. Progress across the Senate’s model of the invoice had been stalled for weeks because of the longest US authorities shutdown in historical past.

Senator Lummis mentioned on the Blockchain Affiliation Coverage Summit in Washington, DC, on Tuesday that she anticipates a markup listening to for the laws will occur earlier than Congress breaks for the vacations. A markup includes lawmakers contemplating amendments and adjustments earlier than a invoice is shipped to the Senate for a vote.

Our first panel on Day 2, @SenLummis =and @gillibrandny with @julie_stitzel The Coverage Path Forward: Bipartisan Management on Digital Belongings… pic.twitter.com/OeZakLaeKv

— Blockchain Affiliation (@BlockchainAssn) December 9, 2025

Whereas acknowledging considerations across the laws’s progress, Senator Lummis mentioned that drafts have been “modified a lot each few days” throughout bipartisan discussions. 

“I believe that we’re to the purpose the place it’s higher to go forward with a product and mark it up subsequent week after which give everyone a break over the Christmas break to catch their breath,” she mentioned. 

Lummis mentioned that her objective is to share a draft by the top of this week for the trade to vet, earlier than Republicans and Democrats evaluate it. Thereafter, she plans for the laws to go to markup subsequent week.

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