aht****@gmail.com

06/03 08:18

U.S. Senator Cynthia Loomis strongly criticized th

U.S. Senator Cynthia Loomis strongly criticized the Fed's withdrawal of cryptocurrency policy for the following reasons

U.S. Senator Cynthia Loomis severely criticized the Fed's recent move to withdraw guidance on cryptocurrency activities. She believes that this decision does not represent real progress in the digital asset industry and expressed concerns about the continued regulatory challenges facing cryptocurrency companies.

As a staunch advocate of cryptocurrency, Loomis believes that the Fed's actions will continue to stifle innovation and create unnecessary barriers for businesses in the field.

Cynthia Loomis expresses concern about the Fed's withdrawal of cryptocurrency guidance

Senator Cynthia Loomis expressed her dissatisfaction with the Fed's decision to withdraw regulatory guidance on certain cryptocurrency activities on X (original Twitter). She emphasized that despite the Fed's actions, the core problems facing the cryptocurrency industry have not been resolved.

"The Fed's withdrawal of cryptocurrency guidance is just empty talk, not real progress," Loomis said. "We are not fooled." Loomis believes that the Fed's withdrawal of guidance is not real progress and fails to solve the fundamental problems.  In another statement, Loomis said:

“Chairman Powell, I will continue to hold the Fed accountable until the digital asset industry is protected better than a ‘life jacket’ – they need to be treated fairly.”

Cynthia Loomis also criticized the Fed’s previous regulatory actions for harming the digital asset industry. She noted that the Fed’s stance has led to the closure of cryptocurrency businesses and hindered innovation. In her view, the Fed’s policies have severely harmed the interests of the United States by preventing the cryptocurrency industry from reaching its full potential.

The Fed’s regulatory approach to crypto assets

The Fed’s decision to withdraw certain regulatory letters represents a new direction in its regulation of the cryptocurrency industry. These letters previously required banks to obtain prior permission when conducting activities related to stablecoins and other cryptocurrencies.

In withdrawing the guidance, the Fed follows similar practices of other regulators, including the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC), which have also taken a more relaxed approach to banking services related to cryptocurrencies.

 Despite these changes, Caitlin Long, founder of Custodia Bank, shared Cynthia Lummis’ concerns about the Fed’s continued stance on digital assets. Long said the Fed has not withdrawn its guidance issued in January 2023, which states that Bitcoin and other cryptocurrencies remain “unsafe and unsound.”

Cynthia Lummis’ Criticism of Fed’s Master Account Policy

Senator Cynthia Lummis also noted that the Fed has failed to address master accounts, which are allegedly being used illegally to restrict banking services to cryptocurrency businesses.  

The Fed’s failure to comply with master account regulations has not been well received by Lummis and other members of the cryptocurrency community. In her view, this still prevents cryptocurrency companies from being on the same level as regular traditional companies. Banks need master accounts to access specific services from the Fed, and Lummis believes this constitutes unequal treatment of cryptocurrencies.

 She called on the Fed to stop using reputational risk as a guiding principle for cryptocurrency activities and stop its negative impact on innovation. Lummis said that even though the new chairman of the SEC has been sworn in, the Fed has stifled the development of the cryptocurrency industry by not allowing broad access to these accounts. 

#Check In to Win a 20g Gold Bar#Share BTC or ETH Futures Trades#Share Your Thoughts on Popular Assets in June

1Condividi