AFL-CIO Warns CLARITY Act Could Expand Crypto in 401(k)s

The AFL‑CIO wrote in a May 11 letter that the Senate CLARITY Act could lower legal barriers and make it easier for cryptocurrencies to appear inside pension plans, 401(k) accounts and other retirement vehicles. The labor federation asked senators to oppose the Senate version of H.R. 3633, the market-structure bill known as CLARITY.

The Senate Banking Committee advanced CLARITY in a 15-9 vote, a procedural step that moves the measure toward a full Senate debate. The bill seeks to define digital commodities and securities, set rules for intermediaries and custody, and regulate trading activity, decentralized finance services and stablecoins.

The AFL‑CIO’s letter focuses on how clearer federal labels and market rules could affect retirement-plan decision processes. Pension trustees, 401(k) fiduciaries, asset managers and custodians typically rely on legal and compliance certainty to evaluate investments. The letter said clearer rules on classification, valuation, custody arrangements, benchmarks and disclosure could make it easier for plan gatekeepers to justify products with crypto exposure.

Federal regulatory moves outside CLARITY have shifted the retirement debate. In 2025, the Department of Labor rescinded a 2022 crypto-specific warning to 401(k) fiduciaries and returned to a process-based ERISA standard. In March 2026, the agency proposed a rule that would create process-based safe harbors for selecting alternative assets for 401(k) menus, including vehicles with digital-asset exposure. The AFL‑CIO argued that those changes, combined with market-structure clarity, could widen access to crypto in retirement plans.

CLARITY would not require pensions or 401(k) plans to buy crypto. The bill’s design choices could matter for product development: tokenized products, pooled funds or managed vehicles can embed crypto exposure in ways that may be less visible to plan participants than a direct coin allocation. Fiduciaries would still be required to assess fees, valuation methods, liquidity and custody risks when considering such products.

A 2024 Government Accountability Office report cited volatility, valuation challenges, limited data and oversight gaps for crypto in defined-contribution plans and found current use of crypto in retirement plans remained low. The total crypto market capitalization is roughly $2.58 trillion, with Bitcoin about $1.55 trillion, Tether about $189 billion and USDC about $76 billion.

Supporters of CLARITY argue a federal framework would reduce regulatory uncertainty and make digital-asset markets easier to oversee. The next Senate text and any amendments will determine whether the bill addresses the AFL‑CIO’s concerns about retirement-plan access and product design.