U.S. Senator Lummis: Fed's Withdrawal of Crypto Guidance is a Smoke and Mirrors Tactic - Coin Bulletin

The Federal Reserve’s pullback on cryptocurrency guidance was characterized by Senator Lummis as merely a showy move.

U.S. crypto-friendly senator Cynthia Lummis made strong statements yesterday regarding the Federal Reserve’s pullback of some guidance related to cryptocurrency. Lummis stated that this move was “just show” and emphasized that the Fed’s stance towards banks in the crypto ecosystem has not changed.

According to Wu Blockchain, Senator Lummis stated in a post on his Twitter account that the Fed is still illegally blocking crypto banks’ access to main accounts and is still using the “reputational risk” factor in bank supervision. He noted that this situation is different from other regulatory bodies such as the OCC (Office of the Comptroller of the Currency) and the FDIC (Federal Deposit Insurance Corporation).

(# The classification of Bitcoin as “unsafe” is still ongoing.

Among Lummis’ criticisms is the Fed’s failure to pull back its 9)13### Policy Statement. This statement classifies Bitcoin and digital assets as “unsafe and unhealthy”. The senator expressed skepticism about the institution’s true intentions, noting that the same individuals involved in the operation known as “Operation Chokepoint 2.0” are still working on crypto issues today.

These statements raise doubts about whether the Fed’s regulatory approach in the cryptocurrency space has truly changed, while also showing that crypto-friendly politicians continue to demand a fairer regulatory framework for the sector.