The post US Senator Cynthia Lummis Calls Out Fed Crypto Policy Withdrawal, Here’s Why appeared on BitcoinEthereumNews.com.

US Senator Cynthia Lummis has sharply criticized the Federal Reserve’s 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’s actions will continue to stifle innovation and create unnecessary hurdles for businesses in the space. Cynthia Lummis Concerns Over the Fed’s Crypto Guidance Withdrawal Senator Cynthia Lummis took to X (formerly Twitter) to express her dissatisfaction with the Federal Reserve’s decision to rescind certain supervisory guidance regarding cryptocurrency activities. She emphasized that despite the Fed’s actions, the core issues facing the crypto industry remain unresolved. “The Fed withdrawing crypto guidance is just noise, not real progress,” Lummis said. “We are NOT fooled.” According to Lummis, the Fed’s withdrawal of guidance is not a real step forward and fails to address the underlying problems. In a further statement, Lummis said, “I will continue to hold the Fed accountable until the digital asset industry gets more than a life jacket, Chair Powell—they need a fair shake.” Cynthia Lummis also criticized the Federal Reserve for undermining the digital asset industry with previous regulatory actions. She pointed out that the Fed’s stance had led to the closure of crypto businesses and hampered innovation. In her view, the Fed’s policies have done significant harm to American interests by preventing the crypto industry from reaching its full potential. Fed’s Regulatory Approach to Crypto Assets The decision by the Federal Reserve to withdraw certain supervisory letters represents a new direction in handling of the cryptocurrency industry. These letters had earlier requested banks to obtain prior permission when they intended to undertake activities concerning stablecoins and other cryptocurrencies. By withdrawing this guidance the…

---

Filed under: News - @ April 26, 2025 4:23 am