Senator Lummis Critiques Fed’s Crypto Guidance Withdrawal, Calls It ‘Just Noise’

Crypto industry figures are reacting to the US Federal Reserve’s recent softening of its stance on crypto banking, but Senator Cynthia Lummis is skeptical about the significance of this move. In a statement shared on X (formerly Twitter), Lummis accused the Fed of merely offering ‘lip service,’ arguing that withdrawing its 2022 supervisory letter discouraging banks from engaging with crypto and stablecoin activities doesn’t represent true progress. She highlighted several flaws in the Fed’s announcement, including its continued reliance on reputational risk during bank supervision and unresolved issues with master account regulations.