Crypto: Fed Withdrawal Criticized by Lummis

Senator Lummis Criticizes Federal Reserve’s Crypto Guidelines Withdrawal

• The Federal Reserve, FDIC, and OCC rescinded guidelines on banks conducting crypto activities.
• The Fed claims the withdrawal aligns expectations with evolving risks and supports banking innovation.
• Senator Cynthia Lummis argues the Fed’s actions are superficial, citing continued use of reputation risk in supervision.
• Lummis states the Fed has not withdrawn policies labeling Bitcoin and crypto as unsafe.
• The Fed is accused of disregarding laws related to crypto banks applying for master accounts.
• Lummis introduced a bill to use Bitcoin as a strategic reserve asset alongside Representative Nick Begich.

Senator Cynthia Lummis criticizes the Federal Reserve’s withdrawal of crypto guidelines, calling it “lip service” due to ongoing policies against Bitcoin and alleged legal disregard. She highlights that the same staff who opposed digital assets remain employed by the Fed.