Okay, buckle up crypto fam, because this isn’t the victory lap some folks are proclaiming it to be. Senator Cynthia Lummis is absolutely torching the Federal Reserve for what she calls a pathetic retreat on its crypto banking guidance. While some – and yes, she namedropped Michael Saylor and Anthony Pompliano – are acting like this is a massive win, Lummis isn’t buying it for a second.
Photo source:cryptoadventure.com
She’s right to be skeptical. The Fed pulled back a 2022 supervisory letter, and everyone’s yelling “progress!” But Lummis sees it for what it is: a whole lotta noise. The core problem? The Fed’s still clinging to the deeply flawed Section 9(13) of its policy statement, which still paints Bitcoin and digital assets as fundamentally ‘unsafe’.
Let’s break down why this matters, because it’s more complicated than headline grabbing:
Section 9(13) gives the Fed wiggle room to basically punish banks based on reputational risk. That’s right, fear-mongering and FUD can dictate policy! It’s a throwback to Operation Chokepoint 2.0, a truly awful program designed to choke off legitimate businesses the government didn’t like.
And guess what? The same people who cooked up that mess are still in positions of power, influencing crypto policy. Seriously frustrating, right?
Lummis is hitting on a critical point: the Fed continues to bypass primary account law, a legal pathway designed to govern this space. This isn’t about safety; it’s about control.
This isn’t a game changer; it’s a tiny skirmish in a much larger war. Lummis vows to keep the Fed’s feet to the fire until the digital asset industry gets a fair shake. And honestly? I’m with her. We deserve better. This is just a blatant disregard for innovation and financial freedom; it’s infuriating.
