Senator Cynthia Lummis swears to hold the Fed accountable until crypto gets more than a ‘life jacket’

Senator Cynthia Lummis, the SBR's evangelist, said he would continue to hold the Fed Accountable until the crypto was fully supported. This is related to the fed removal of crypto policies for banks, which ended “chokepoint” skills.

According to Reports, Lummis said he would “Continue to perform the Fed Accountable until the digital asset industry is getting more of a life jacket.”

Bummis and the Fed – a relationship that won't work

Lummis is in the first line of exposure to the Federal Reserve involvement in the crypto industry under former President Joe Biden. The Fed has internal guidelines that teach staff to handle “controversial” clients, including crypto companies, with extreme time careful time.

Many leaders in the crypto industry have said that they and their companies have turned for traditional banking services just because they are involved in the crypto industry. Ever since he received the office again, Trump has committed a leading goal to end this alleged bias against crypto banking, which he called “Operation Chokepoint 2.0.”

It's so bad that Nathan McCauley, CEO of Anchorage Digital Bank – the only Crypto Bank with national charter Says, “I am talking to a room that is nearly 100 crypto founders in San Francisco. I asked them to raise their hands if they would have trouble getting or maintaining a bank account. Every single hand would go up.”

Fortunately, his hard work produces fruit for the crypto industry. On Thursday, the Fed announced that bank members did not need to provide a notice of the Crypto and Stablecoin projects. Instead, the Fed will watch how banks interact with digital assets as they do in any other activity.

“The Board saves the 2022 administration letter establishing a hope that state member banks provide an initial notice of planned or current crypto asset activities,” The Board of Governor of the Federal Reserve said.

Rule change does not provide access to crypto-focused banks in 'Master Account'

For an institution to use Federal Reserve System payment methods and adjust Central Bank's currency transactions, it needs to have a master account at a Federal Reserve Bank.

However, even though the Fed has become more friendly, changing policies does not provide access to crypto-focused banks on master accounts. Those master accounts should be available for any crypto bank to deliver customers nationwide.

For years, the Fed has refused to give these types of accounts to crypto -focused banks such as Kraken Financial and Custodia.

Removal of the Chokepoint is the first step towards the purpose of freedom for the crypto creature. Despite remembering the crypto community that the Fed refused to make this change because of Powell's Beef with Trump, the decision has been made.

Crypto stakeholders believe that the willingness of the leaders to ensure that the Fed does not allow but support the crypto will push the other agenda of crypto adoption.

Also, the Fed, the Federal Deposit Insurance Corporation, and the Money Comptroller's office returned two comments they made in 2023. It's about banks working with people in the asset sector that could be fraud.

“Inaccurate or misleading representations and disclosure of asset companies asset […] It may not be fair, deceptive, or abusive, contributing to significant harm to investors and institutional investors, ” The agencies said.

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