U.S. Senator Cynthia Lummis has become a focal point in the finance industry by openly accusing the Federal Reserve of blocking crypto banking and calling for the resignation of Chair Jerome Powell.
Regulators Shut Down Solvent Banks
In a recent interview, Senator Lummis did not hold back. When asked whether the Federal Reserve is hindering the cryptocurrency revolution, she replied, "Absolutely." She accused the Fed of shutting down financially healthy banks that served crypto firms. "These were solvent banks," she said. "They were not failing." Lummis stated that the Fed’s actions harmed not only the banks but the entire crypto ecosystem by cutting off key financial services.
Crypto and the Banking System
This is not the first time tension has emerged between the crypto industry and conventional banking regulators. In the U.S., crypto banking remains a nebulous area. Banks are unsure whether working with crypto clients could trigger stricter regulations or penalties. Despite being one of the most crypto-friendly members of Congress, Lummis believes regulators aim to restrict everything. She has always supported better regulations that would allow crypto companies and banks to cooperate without fearing regulatory backlash.
What’s Next for Crypto Banking?
These comments by the senator will contribute to further debates focused on the need for new regulations and models. The goal is to encourage cryptocurrency banking while maintaining financial system security. Lummis considers that the Federal Reserve is holding back the industry.
Senator Lummis's remarks raise important questions about the future of crypto banking in the U.S. and the need for updates to the regulatory environment.
