Ahead of the Senate Banking Committee’s anticipated markup of the CLARITY Act on Thursday, the bill is facing a fresh wave of opposition—this time from major labor unions.
In a letter that warned senators the measure could put retirement security at risk, multiple unions argued the legislation would introduce new instability into retirement plans for workers who have little control over how their savings are managed.
According to CNBC, a letter and email first seen by the network show the AFL-CIO, along with the Service Employees International Union, American Federation of Teachers, National Education Association, and the American Federation of State, County and Municipal Employees sent a message to every senator on Friday.
The unions said the legislation “jeopardizes the stability of workers’ retirement plans, including public pensions, and introduces significant volatility to retirement savings accounts.”
They also warned that the bill encourages the crypto industry to take “outsized risks,” arguing that if those bets fail, the costs would fall on working people and retirees rather than on crypto executives or wealthy investors.
The AFL-CIO also reportedly sent an additional email to members of the Senate Banking Committee on Friday. In that message, the union argued that without “sufficient regulation,” embedding cryptocurrencies and other digital assets into the broader economy could destabilize workers’ financial stability.
The labor push adds to pressure already building from the banking sector, where trade groups have been pushing for revisions to key CLARITY Act provisions and to parts of the GENIUS Act for stablecoins that have already been enacted.
As Bitcoinist reported on Monday, Banking trade groups have opposed the stablecoin-rewards provision, arguing it gives crypto companies too much flexibility and could pull deposits away from the regulated banking system.
They also described what they said is a last-ditch effort to win over skeptical Republicans on the Senate Banking Committee ahead of the upcoming hearing.
Even as criticism mounts, senators say negotiations have been ongoing and the committee’s markup is now expected to be based on newly released CLARITY Act text.
On Monday night, Senate Banking Committee Chairman Tim Scott, Subcommittee on Digital Assets Chair Cynthia Lummis, and Senator Thom Tillis, released market structure bill language.
Updated Digital Asset TextIn their release, the senators said the text reflects “continued negotiations with Democratic colleagues” and extensive input from lawmakers, regulators, law enforcement, financial institutions, innovators, and consumer advocates.
Chairman Scott said the CLARITY Act reflects what he described as good-faith work that will benefit “families, small businesses, investors, and innovators” by offering clear rules.
He added that the CLARITY Act is intended to deliver certainty, safeguards, and accountability, put consumers first, combat illicit finance, and crack down on criminals and foreign adversaries—while also keeping what he characterized as the future of finance in the United States.
Lummis, who said Wyoming “led the way” on digital asset legislation and that Washington is now catching up, praised the updated text as the product of nearly a year of bipartisan work.
She described it as bringing the CLARITY Act one step closer to giving the industry the clarity it says it needs, and framed the markup as a move toward solidifying US leadership in digital asset advancement.
Featured image created with OpenArt, chart from TradingView.com
