WHEREAS:
Cryptocurrencies, also known as digital assets, are a rapidly evolving technology that has become increasingly present in public and private financial systems without appropriate regulation; and
WHEREAS:
Cryptocurrencies are, by definition and design, decentralized: They operate independently from any bank, government or regulatory institution and only exist in digital form; and
WHEREAS:
Cryptocurrency has no intrinsic value, and its prices are often extremely volatile, with fluctuations driven simply by each cryptocurrency’s artificial scarcity and demand — that is, whatever people are willing to pay for them. As a result, the history of cryptocurrency, beginning with the launch of Bitcoin in 2009, has been defined by major crashes and rapid surges in value within a short period; and
WHEREAS:
Even cryptocurrencies that are designed to have fixed values, so-called stablecoins, come with significant risk of a run on the bank that will leave issuers unable to pay back stablecoin holders and could undermine the broader financial system; and
WHEREAS:
Users of cryptocurrency lack many of the consumer protections associated with traditional financial systems because transactions using cryptocurrencies are non-reversible, difficult to trace and typically anonymous. This also makes cryptocurrency an ideal tool for fraud and other financial crimes; and
WHEREAS:
Billions of dollars in cryptocurrency assets have been stolen by criminals and rogue nations using hacking and other methods to access investors’ cryptocurrency keys, and investors have lost these assets in a variety of other ways; and
WHEREAS:
While crypto can be used for real-world purchases, most people who buy cryptocurrencies primarily hold them as high-risk, high-potential-reward investments. Just 1.9% of U.S. consumers used crypto to make any kind of payment in 2024, according to the Federal Reserve. Fewer than 1 in 10 consumers owned crypto; and
WHEREAS:
The federal government has failed to adopt adequate cryptocurrency laws and regulations. In July 2025, Congress passed the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, a law supported by the crypto industry that establishes light regulations and consumer protections for stablecoin cryptocurrencies, serves to embed these digital assets into the U.S. financial system and creates great risk that those cryptocurrencies will destabilize much of the financial system in the future. Congress is now considering the Digital Asset Market Clarity (CLARITY) Act, which, if enacted in the form promoted by the cryptocurrency industry, will create a weak regulatory framework that allows firms, banks and investors to engage in risky activities with minimal oversight and weaken enforcement and oversight of digital commodities at the federal and state level; and
WHEREAS:
The cryptocurrency industry has already demonstrated an outsized and alarming influence on U.S. elections. The crypto industry poured almost $250 million into the 2024 election cycle to support President Trump and oppose candidates openly critical of cryptocurrency. In 2024, 85% of congressional candidates backed by crypto funding won their elections, and an estimated $260 million has already been raised from crypto interests for the 2026 election cycle; and
WHEREAS:
The Trump administration has fully embraced cryptocurrency, marking a sharp reversal from previous efforts to regulate it. The administration has supported both the GENIUS Act and CLARITY Act, and Trump has signed multiple executive orders promoting the crypto industry, creating a Strategic Bitcoin Reserve and directing the federal government to facilitate access to cryptocurrency in 401(k) plans. The administration also has sharply reduced enforcement actions against the cryptocurrency industry; and
WHEREAS:
Encouraged by the federal government’s recent endorsement and heavy lobbying by the crypto industry, state legislators have, in the past two years, introduced bills in more than 20 states to permit publicly controlled funds to invest in cryptocurrency and crypto-related assets; and
WHEREAS:
Many of the arguments made to promote investments in cryptocurrency, especially the anonymity of ownership and transactions and the value of holding a currency that is outside the control of governments, are irrelevant or inappropriate considerations for investments made by state and local governments and public employee pension and other retirement funds; and
WHEREAS:
Fiduciaries managing pensions and other public funds are legally obligated to act prudently and solely in the best interest of their beneficiaries, including a duty to diversify investments to minimize the risk of significant financial loss; and
WHEREAS:
Weak regulation of new financial products has previously led to financial crises and federal bailouts for which taxpayers have paid the bill; in the absence of strong investor protections, cryptocurrency crashes may lead to similar financial crises and massive taxpayer-funded bailouts; and
WHEREAS:
Secure pensions are a hard-won right for public sector workers who spend their working lives serving the public, and many AFSCME members rely on healthy pension funds as the foundation of a stable retirement.
THEREFORE BE IT RESOLVED:
AFSCME will advocate at the federal and state levels for the comprehensive regulation of cryptocurrencies, including clear disclosure requirements, anti-fraud protections, robust oversight and enforcement as a financial instrument/security by appropriate federal regulatory agencies, and a prohibition against taxpayer-funded bailouts for the cryptocurrency industry; and
BE IT FURTHER RESOLVED:
AFSCME opposes federal preemption of state laws that protect investors in cryptocurrencies; and
BE IT FURTHER RESOLVED:
AFSCME will advocate for statutory prohibitions on crypto investment by state pension funds, public employee retirement funds, federal funds or other government-managed investment accounts; and
BE IT FINALLY RESOLVED:
AFSCME demands all investments in cryptocurrency and adjacent digital assets in public funds be properly classified and disclosed as high-risk holdings.
SUBMITTED BY:
Chris Mabe, President
Melissa Yank, Secretary and Delegate
Ohio Civil Service Employees Association (OCSEA)/AFSCME Local 11
Ohio
Veronica Gunn, President and Delegate
Andrew Perry, Secretary and Delegate
AFSCME District Council 36
California