Senator Lummis Slams Fed’s ’Lip Service’ on Crypto—Bias Still Running Deep

Wyoming Senator Cynthia Lummis isn’t buying the Federal Reserve’s sudden crypto curiosity. ’The anti-crypto bias persists,’ she fires off, ’despite all the polite nods and whispered promises.’

Behind the scenes? Same old regulatory roadblocks—just with a fresh coat of bureaucratic paint. Meanwhile, TradFi keeps playing with taxpayer money like it’s a Vegas blackjack table.

One question remains: When will the Fed realize decentralized finance isn’t going anywhere—no matter how hard they drag their heels?

Fed didn’t withdraw a key anti-Bitcoin guidance: Lummis

The Senator also points to the fact that the Fed uses reputation risk when supervising banks. This applies to certain industries that, while legal, are unpopular and could damage the bank’s reputation. Notable examples include the oil industry, the marijuana industry, and crypto.

This standard is controversial as it makes it harder for legal businesses to find banking partners. Lummis claims that the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation recently stopped using reputation risk. However, she believes that the Fed didn’t.

Lummis also pointed out that the Fed didn’t withdraw the Policy Statement on Section 9(13). This statement calls Bitcoin and other crypto assets “unsafe and unsound”. Finally, the Senator complained that the Fed’s staff behind the supposed operation “Chokepoint 2.0” is still running the Fed today.

Operation Chokepoint refers to the supposed anti-crypto bias, or a series of coordinated actions on behalf of U.S. regulators under the Biden administration. During Joe Biden’s term in office, crypto companies complained that they found it increasingly difficult to find banking partners in the U.S. This has led many to scale back their services or look for offshore banking partners.