American senator Cynthia Lummis suggests that cryptographic industry could celebrate too early during the American Federal Reserve, softening its crypto guidelines for banks.
“The Fed withdrawn Crypto Guidance is only noise, no real progress,” said Lummis in a post on April 25. Lummis called the Fed’s announcement on April 24 – withdrawing its supervision letter in 2022 which had discouraged the banks to engage with the activities of Crypto and Stablecoin – “just a lip service”.
Lummis is “not fooled”
Lummis, a Pro-Crypto defender known for having introduced the Bitcoin Strategic Reserve Bill (BTC) in July 2024, underlined several faults from the Fed announcement, even if the founder of the strategy Michael Saylor and the Crypto Anthony Poseliano entrepreneur suggest that it was a step forward for banks and crypto.
It argued that the Fed continues to “illegally flout the law on master accounts” and is still based on the risk of reputation in its banking supervision practices. It occurs while the Federal Insurance Deposit Corporation (FDIC) works on a rule to prevent examiners from examining reputation risks when examining a bank operations, according to a recent Bloomberg report.
Lummis also underlined the FED policy statement in section 9 (13), which has not been withdrawn, declaring that Bitcoin and digital assets are considered “dangerous and unrelated”.
She has also reiterated many of the same staff behind the ChokePoint 2.0 operation is still involved in cryptographic policy today.
“We are not due. The Fed assassinated companies within the industry and harms American interests by stifling innovation and closing companies. This fight is far from over. ”
“I will continue to hold the Fed responsible until the digital asset industry gets more than a life jacket, President Powell – they need just shaking up,” said Lummis.
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The founder and CEO of the Custodia Caitlin Long bank seemed to share a similar vision in Lummis.
“Thank you for seeing this for what it is,” said Long.
However, other Crypto leaders praised the Fed’s announcement as a positive development for industry. Saylor said in an article on April 25 that Fed’s move means that “banks are now free to start supporting Bitcoin”.
Anastasija Plotnikova, co-founder and CEO of the Blockchain Fideum regulation company, said that Fed’s decision “is an important development because it will simplify the way for institutional adoption”.
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