US Senator Reveals Federal Reserve's Internal Guidelines on Master Account Applications for Cryptocurrency
Summary
- Senator Cynthia Lummis reported that she disclosed the Federal Reserve's internal guidelines related to Master Account applications.
- Senator Lummis pointed out that there are cases where new banks in the cryptocurrency and sensitive industries had their Master Account applications rejected without clear explanations.
- The Federal Reserve claims not to discriminate against specific industries, but the internal documents reportedly contain information that contradicts this.
On the 5th (local time), according to Eleanor Terrett, a Fox Business reporter, US Senator Cynthia Lummis has obtained and disclosed an internal guideline from the Federal Reserve, which includes the directive to 'exercise caution when dealing with controversial clients.'
This document was revealed by Cynthia Lummis during a de-banking hearing, referring to the practice where banks unilaterally freeze accounts related to cryptocurrency. It is an internal guideline provided to Federal Reserve staff responsible for reviewing and granting access to the Master Account, which is the Federal Reserve's payment system access authority.
She stated, "Applications for Master Accounts from some new banks related to sensitive industries such as cryptocurrency and cannabis businesses have been rejected without clear explanation," adding, "The Federal Reserve claims not to discriminate against specific industries or individuals for political reasons or excessive risk aversion, but the internal documents contain information that contradicts this. Additional materials will also be disclosed."
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
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