U.S. Senator Cynthia Lummis has voiced strong criticism toward the Federal Reserve, arguing that its recent withdrawal of certain cryptocurrency banking guidelines does not amount to meaningful progress.
According to a post on X, Lummis stated that the Fed’s move is largely symbolic, accusing the central bank of continuing to suppress innovation in the digital asset space.
She emphasized that the regulatory environment remains hostile to cryptocurrency companies, which she believes is damaging both to American business interests and to the broader goal of technological advancement.
Federal Reserve’s Stance on Crypto Remains Firm Despite Withdrawal
Despite pulling back some guidance, Lummis highlighted that the Federal Reserve has not rescinded its core stance that Bitcoin and digital assets are “unsafe and unsound” for traditional banking.
The classification still poses major obstacles for crypto businesses seeking banking relationships.
Lummis’s remarks suggest that although the Fed may have made surface-level adjustments, the underlying regulatory hostility remains intact.
In her view, the central bank continues to choke off innovation by maintaining policies that discourage financial institutions from engaging with cryptocurrency-related firms.
Also Read: Senator Cynthia Lummis Embraces ‘Laser Eyes’ Trend Amid Bitcoin Strategic Reserve Act Push
Operation Chokepoint 2.0 Staff Still Influencing Crypto Policies
Senator Lummis also raised concerns about the lingering influence of policymakers who were involved in what she calls “Operation Chokepoint 2.0”, an effort she describes as targeting crypto and other emerging industries under the guise of risk management.
She warned that many of the same individuals responsible for past regulatory crackdowns are still shaping today’s crypto policies.
The persistence, according to Lummis, signals that the U.S. government’s approach to cryptocurrency remains entrenched in outdated risk perceptions rather than adapting to the sector’s evolving potential.
Also Read: U.S Senator Lummis Plans To Push FED To Buy Bitcoin Reserves By Selling Its Gold
The Fight for Crypto Innovation in the U.S. Continues
In her concluding remarks, Lummis stressed that the battle for fair treatment of cryptocurrencies in the U.S. is far from over.
She reaffirmed her commitment to pushing for clearer, more supportive regulatory frameworks that allow for innovation while maintaining appropriate safeguards.
Her comments serve as a rallying call for lawmakers, businesses, and the broader crypto community to continue advocating for a more open and forward-thinking approach to digital assets.
Lummis’s strong stance highlights growing political tensions around the future of crypto regulation in the United States.