Cynthia Lummis: "Fed's Crypto Regulation Easing Is Not Real Progress"

Minseung Kang

Summary

Senator Cynthia Lummis criticized the Fed's announcement of easing crypto regulations as not real progress.
Senator Lummis claimed the announcement is mere lip service and that the master account issue remains unresolved.
The Fed's recent announcement stated that banks would be allowed to handle cryptocurrencies under certain conditions.

Amid the U.S. Federal Reserve's (Fed) announcement of easing regulations on banks' handling of cryptocurrencies, Senator Cynthia Lummis, known for her pro-crypto stance, expressed a critical view on the matter.

According to crypto-specialized media Cointelegraph on the 26th (local time), Senator Lummis stated on X (formerly Twitter) the previous day, "The Fed's withdrawal of crypto-related guidelines is merely noise, not substantial progress," and criticized the announcement as mere lip service.

Recently, the Fed announced the official withdrawal of the supervisory letter issued in 2022 that restricted banks' activities involving cryptocurrencies and stablecoins, stating that banks would be allowed to handle cryptocurrencies under certain conditions.

Senator Lummis criticized, "The Fed is still avoiding the master account issue," and emphasized, "We are not fooled. The Fed has sacrificed industry companies and stifled American innovation. This fight is not over."

Meanwhile, a master account refers to an account directly opened at a Fed branch, granting financial institutions official status to access the Fed's payment network.