Trade Unions choose to side with anti-cryptocurrency team CLARITY Act.
A price increase hearing is planned in the legislation Senate Banking Committee this Thursday. Senator, who recently became the Committee’s top Democrat Elizabeth Warrenthere was stood by the old banking sector to oppose the bill. Today, AFL-CIO She published a letter supporting Warren, claiming that the CLARITY Act would make wealthy individuals richer while putting the majority at greater risk.
Here is the CLARITY Act.
To quote the letter sent to the Senate:
“We are deeply concerned that this bill will cause digital assets to flow into retirement plans, retirement accounts, and our broader financial system under an ineffective system of regulation. While this will further enrich a few wealthy people, it puts the rest of us at risk.”
The labor union is of the view that “working people will be hit first and hit hardest” when the financial system is destabilized by digital assets.
The letter believes that tokenization is nefarious and supports “a new form of shadow stock that will exist outside of SEC oversight.”
Regarding the banking industry, the AFL-CIO predicts that risk will increase as FDIC-insured banks transition to blockchain technology and custody of digital assets.
“If an agreement has been reached between the banking and crypto industries, that’s no reason to rush. There are more parties to bring to the table. Hundreds of millions of workers have interests here. Among other things, our pensions should not be on billionaires’ menus. The AFL-CIO strongly urges you to oppose the Responsible Financial Innovation Act.”
letter signed Jody CalemineDirector, Government Affairs.
The legislation has already been approved in the House of Representatives and a deal has been struck in the Senate, which is expected to provide enough support for the bill to pass on a floor vote. The banking industry has recently renewed its attacks on the bill, using tactics such as fear of the unknown to force its members to call lawmakers and demand they oppose the bill.
These last-minute statements overlook the fact that the internal debate between lawmakers, industry participants and the White House has been going on for months. The digitalization of finance is inevitable and offers many benefits to consumers and small businesses. The bill’s current language promotes security and opposes illegal activity, which has always been a problem in the financial services industry, digital or not. Unfortunately, there appears to be an overly partisan effort to derail the modernization of finance that could lower costs, streamline services, and help the masses access greater opportunities and new asset classes.
