CYNTHIA LUMMIS, the Republican Senator from Wyoming, has openly criticized the Federal Reserve’s recent withdrawal of crypto-related guidelines for banking institutions, labeling the move as “lip service.”
In a detailed thread on the social media platform X, the pro-crypto legislator argued that the Fed’s actions are largely superficial. She highlighted that the central bank continues to employ reputation risk as a supervisory tool and has not retracted its stance that cryptocurrencies, including Bitcoin, are inherently unsafe and unsound. Additionally, Lummis accused the Fed of disregarding legal requirements when processing master account applications from crypto banks, which are essential for their financial operations with reserve banks.
The Federal Reserve, alongside the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC), recently revoked several guidelines and statements pertaining to banks engaging in crypto-asset activities. The Fed stated that these changes aim to align supervisory expectations with evolving risks and support innovation within the banking system.
However, Lummis contends that the Fed’s efforts fall short of meaningful reform. She pointed out that the same regulatory staff responsible for stringent oversight of the digital assets industry under the Biden Administration remain in place, undermining any genuine progress.
Last month, Senator CYNTHIA LUMMIS, in collaboration with Representative NICK BEGICH, introduced a landmark bill aiming to establish Bitcoin as a strategic reserve asset. This legislative effort followed an executive order signed by former President Donald Trump to recognize Bitcoin’s potential in this capacity.
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