The Fed recently fell the warning banks for cryptographic risks. Senator Cynthia Lummis called her “lip service”.
The federal reserve has removed restrictive directives from banks with cryptographic assets, but not everyone is convinced that the regulator takes a new direction. Friday, April 25, Pro-Crypto Senator Cynthia Lummis castigated the Fed for what she considers performative stages on Bitcoin.
Lummis stressed that the Fed continues to block access to several convivial banks to master the accounts. These are special types of accounts that allow banks to participate directly in the Fed payment system. This recently led to a friendly friendship bank in crypto in the Fed, citing unjustified delays in its main account request.
The Fed did not withdraw a key anti-cockin guide: Lummis
The senator also highlights the fact that the Fed uses the risk of reputation when supervising banks. This applies to certain industries which, although legal, are unpopular and could harm the reputation of the bank. Notable examples include the petroleum industry, the marijuana industry and the crypto.
This standard is controversial because it is more difficult for legal companies to find banking partners. Lummis claims that the office of the currency controller and the Federal Deposit Insurance Corporation recently ceased to use the risk of reputation. However, she thinks that the Fed did not do it.
Lummis also stressed that the Fed did not withdraw the declaration of the policy on article 9 (13). This declaration calls Bitcoin and other “dangerous and unrelated” cryptographic assets. Finally, the senator complained that the Fed staff behind the supposed operation “Chokepoint 2.0” still manages the Fed today.
The ChokePoint operation refers to the supposed anti-Crypto prediction, or to a series of actions coordinated on behalf of the American regulators under the Biden administration. During the mandate of Joe Biden in office, cryptographic companies complained of having found more and more difficulty finding banking partners in the United States, this led a lot to reduce their services or search for offshore banking partners.
