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US Senator Cynthia Lummis has sharply criticized the Federal Reserve\u2019s recent move to withdraw guidance on cryptocurrency activities. She argued that the decision does not represent genuine progress for the digital asset industry and raised concerns about the ongoing regulatory challenges facing crypto companies.<\/span> <\/span><\/p>\n Lummis, a staunch advocate for cryptocurrency, believes that the Federal Reserve\u2019s actions will continue to stifle innovation and create unnecessary hurdles for businesses in the space. Senator Cynthia Lummis took to X (formerly Twitter) to express her dissatisfaction<\/a> with the Federal Reserve\u2019s decision to rescind certain supervisory guidance regarding cryptocurrency activities.<\/span> She emphasized that despite the Fed\u2019s actions, the core issues facing the crypto industry remain unresolved.<\/span><\/p>\n \u201cThe Fed withdrawing crypto guidance is just noise, not real progress,\u201d Lummis said. \u201cWe are NOT fooled.\u201d According to Lummis, the Fed\u2019s withdrawal of guidance<\/a> is not a real step forward and fails to address the underlying problems. In a further statement, Lummis said, <\/span><\/p>\n \u201cI will continue to hold the Fed accountable until the digital asset industry gets more than a life jacket, Chair Powell\u2014they need a fair shake.\u201d<\/span> Cynthia Lummis also criticized the Federal Reserve for undermining the digital asset industry with previous regulatory actions. She pointed out that the Fed\u2019s stance had led to the closure of crypto businesses and hampered innovation. In her view, the Fed\u2019s policies have done significant harm to American interests by preventing the crypto industry from reaching its full potential.<\/span><\/p>\n The decision by the Federal Reserve to withdraw certain supervisory letters represents a new direction in handling of the cryptocurrency industry.<\/span> These letters had earlier requested banks to obtain prior permission when they intended to undertake activities concerning stablecoins<\/a> and other cryptocurrencies.<\/p>\n By withdrawing this guidance the Fed follows similar tendencies of other regulators, including the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) who have also shifted to more lenient approach to banking services related to crypto.<\/span><\/p>\n Despite these changes, Caitlin Long, founder of Custodia Bank, like Cynthia Lummis, has raised concerns<\/a> about the Federal Reserve\u2019s continued stance on digital assets. According to Long, the Fed had not withdrawn its guidelines published back in January 2023 that stated that Bitcoin and other cryptocurrencies remained \u201cunsafe and unsound.\u201d<\/span><\/p>\n Senator Cynthia Lummis also pointed out the negligence of the Federal Reserve in not addressing the concerns of master accounts, allegedly used illegally to limit banking services for crypto enterprises.<\/span><\/p>\n The Fed\u2019s noncompliance with the law of master accounts has not been well received by Lummis and other members of the crypto community. In her opinion, this still keeps the crypto companies from being on the same level as normal traditional firms. <\/span>Master accounts are necessary for banks to receive specific services from the Fed, and Lummis says that this constitutes unequal treatment of crypto. <\/span><\/p>\n She appealed to the Federal Reserve to cease employing reputation risk as the guiding principle for crypto activities, and its detrimental effect on innovation. According to Lummis, despite the swearing in of a new US SEC Chair<\/a>,\u00a0 the Fed is stifling the growth of the crypto industry by not allowing broad access to these accounts.<\/span><\/p>\n The post US Senator Cynthia Lummis Calls Out Fed Crypto Policy Withdrawal, Here\u2019s Why<\/a> appeared first on CoinGape<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":" US Senator Cynthia Lummis has sharply criticized the Federal Reserve\u2019s recent move to withdraw guidance on cryptocurrency activities. She argued that the decision does not represent genuine progress for the digital asset industry and raised concerns about the ongoing regulatory challenges facing crypto companies. Lummis, a staunch advocate for cryptocurrency, believes that the Federal Reserve\u2019s […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[188,183,185,186,187,184,189,150,182,190],"class_list":["post-390377","post","type-post","status-publish","format-standard","hentry","category-technology","tag-blockchain-tech","tag-blockchain-technology","tag-crypto-technology","tag-cryptocurrency-technology","tag-metaverse-technology","tag-nft-technology","tag-soul-bound-token","tag-tech","tag-technology","tag-token-technology"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/390377","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=390377"}],"version-history":[{"count":0,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/390377\/revisions"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=390377"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=390377"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=390377"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\n<\/span><\/p>\nCynthia Lummis Concerns Over the Fed\u2019s Crypto Guidance Withdrawal<\/strong><\/h2>\n
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\n<\/span><\/p>\n<\/blockquote>\nFed\u2019s Regulatory Approach to Crypto Assets<\/strong><\/h2>\n
Cynthia Lummis Criticism of the Fed\u2019s Master Account Policy<\/strong><\/h2>\n