Senator Cynthia Lummis isn’t buying the Federal Reserve’s recent decision to withdraw its crypto guidelines for banks. She believes it’s all for show, a claim she made on X (formerly Twitter).
Why Lummis is Skeptical
The Senator argues the Fed’s action is superficial for several key reasons:
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Reputation Risk Remains: The Fed still considers reputation risk when overseeing banks, which Lummis sees as a backdoor way to continue discouraging crypto activity.
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Bitcoin Still Deemed “Unsafe”: The Fed hasn’t changed its stance that Bitcoin and other cryptocurrencies are inherently risky and unsound.
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Master Account Obstacles: Lummis says the Fed continues to ignore the law when it comes to crypto banks applying for master accounts, a crucial step for operation.
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Same Staff, Same Mindset: The Fed is still employing the same personnel who, according to Lummis, actively tried to hinder the crypto industry under the Biden administration.
Lummis’s Pro-Crypto Stance
It’s worth noting that Senator Lummis is a known advocate for cryptocurrencies. She recently co-sponsored a bill proposing Bitcoin as a strategic reserve asset.
The Bottom Line
Senator Lummis believes the Fed’s withdrawal of crypto guidelines is nothing more than a public relations maneuver, and that the agency continues to actively work against the growth of the cryptocurrency industry.