Senator Lummis: Fed's Crypto Move "Not Real Progress"

United States Senator Cynthia Lummis has voiced skepticism over the Federal Reserve’s recent withdrawal of its 2022 supervisory letter discouraging banks from engaging with cryptocurrencies and stablecoins. In an April 25 post on X (formerly Twitter), Lummis stated, "The Fed withdrawing crypto guidance is just noise, not real progress."

Lummis, known for her pro-crypto stance and for introducing the Bitcoin Strategic Reserve Bill in 2024, pointed out several shortcomings in the Fed's announcement. While industry figures like Michael Saylor and Anthony Pompliano welcomed the move, Lummis offered a more cautious perspective.

She criticized the Fed for continuing to "illegally flout the law" regarding master accounts and for relying on reputational risk assessments in its banking oversight. Furthermore, she noted that the policy section labeling Bitcoin and digital assets as "unsafe and unsound" remains unchanged.

Lummis emphasized that many individuals involved in Operation Chokepoint 2.0 are still active in shaping crypto policy. "The Fed harmed companies in the industry and stifled American innovation. This fight is far from over," she asserted.

Custodia Bank founder and CEO Caitlin Long echoed Lummis’ sentiments, thanking her for recognizing the true nature of the Fed’s actions. Nevertheless, other prominent voices in the industry, such as Michael Saylor, view the Fed’s move as a significant step forward, suggesting that "banks are now free to begin supporting Bitcoin."