Senator Cynthia Lummis said that the recent decision of the Federal Reserve to withdraw certain crypto-related supervisory guidelines “just noise, no real progress”, criticizing the movement as superficially in one rack Shared on April 25 on X.
Lummis rejected the recordings as insufficient. She accused the Fed of ‘Killing companies within the industry’ by previously limiting access to banking services and harming the American competitiveness.
She added that the same FED staff who is responsible for what they called ‘Operation ChokePoint 2.0’, a term used by some crypto proponents to describe efforts to insulate the sector of traditional banking, to remain appropriate and to continue to influence the crypto policy.
The Federal Reserve announced on April 24 that it Multiple guidelines withdrawn Regarding the involvement of banks in digital assets activities.
Under the withdrawn measures, a supervisory letter from 2022 that required banks to inform supervisors before they were to inform crypto activities and a 2023 Directive that obliged non-objects for supervision before offering services related to Dollartokens.
From now on, the Central Bank will keep an eye on banks under the standard supervisory framework without prior notice.
According to the FED, the changes were part of a broader effort to reduce the supervision of the regulations of digital assets activities while maintaining financial stability.
In the coordination with the Federal Deposit Insurance Corporation (FDIC) and the office of the Currency of the Currency (OCC), the FED drew two joint explanations from 2023 that warned banks of possible liquidity risks related to digital assets.
FED’s wider regulatory approach to crypto
Lummis also pointed to the constant dependence on the FED of the reputation risks in bank supervision, which states that the central bank did not withdraw the policy statement in section 9 (13).
That policy regards activities with Bitcoin (BTC) and other cryptos as unsafe and inadequate, creating regulatory obstacles for banks interested in offering crypto-related services. She argued that despite the movements at the surface level, the FED illegally fair access to the master accounts of crypto companies continues to deny.
Lummis, on the other hand, acknowledged that the OCC and the FDIC Have taken steps to leave from reputation -based evaluations, so that the FED remains isolated in its approach. The recordings come in the midst of broader political shifts that have seen a more crypto-friendly tone in Washington.
With the administration of President Donald Trump for digital assets, bank relationships with crypto companies show early signs of revival after years of tense access to traditional financial services.
Current conference focus
Lummis repeated its dedication to legislative supervision of the actions of the Federal Reserve with regard to the digital assets sector.
She said she would continue to insist on reforms to ensure that crypto companies receive “more than a life jacket”, but a fair chance to operate within the American financial system.
The Senator, a long -term advocate for integrating digital assets into the regulatory framework, has often called for clarification around bank supervision, master account access and legal definitions with regard to cryptocurrencies.
Her last statement reflects continuous tensions between federal supervisors and legislators who want to normalize crypto within the banking system.