The U.S. Senator of the United States, Cynthia Lummis, suggests that the crypto industry may rejoice too early when the US federal reserve has its crypto instruction for banks.
“The Fed withdrawal of crypto instructions is barely noise, not real progress,” said Lummis in a post on April twenty fifth. Lummis described the Fed's announcement on April twenty fourth – and ended his supervisory letter from 2022, which had held banks from coping with crypto and stablecoin activities – “just lip service”.
Lummis' sound was different from the remainder of the crypto industry
Lummis, a Pro crypto lawyer who was known for the introduction of Bitcoin (BTC) Strate Reserve in July 2024, identified several mistakes within the announcement of the FED, even when the strategy founder Michael Saylor and the crypto entrepreneur Anthony Pompliano suggested that it was a step for banks and crypto.
Source: Anthony Pompliano
She argued that the FED continued to “illegally exceeded the law on Master accounts” and still depending on the chance of fame within the banking supervisory practices. It happens that the Federal Insurance Deposit Corporation (FDIC) works on a rule to forestall the examiners from checking the chance of fame when checking the business activity of a bank, as might be seen from a recently published Bloomberg report.
Lummis also emphasized the political explanation of the Fed in Section 9 (13), which was not withdrawn, and explained that Bitcoin and digital assets are considered “insecure and insecure”.
She also repeated lots of the same employees behind Operation Chokepoint 2.0 are still involved within the Krypto Directive today.
“We aren’t deceptive. The FED murdered firms throughout the industry and harms American interests by suppressing innovations and switching firms. This fight is way from over.”
“I’ll proceed to carry the FED for the fed until the digital asset industry has greater than a life jacket, Chair Powell – you would like a good shake,” said Lummis.
Custodia Bank founder and CEO Caitlin Long appeared to have the same view to Lummis.
“Thank you for seeing what it’s for what it’s,” said Long.
However, many crypto managers praised the Fed's announcement as a positive development for the industry. Saylor said in a post on April 25 that the move of the Fed signifies that “banks are actually free to support Bitcoin.”
Anastasija Plotnikova, co-founder and CEO of the blockchain regulatory company Fideum, said the choice of the Fed was “a big development because it’ll simplify the method to institutional adoption”.
