Fed’s Crypto Guidance Rollback Draws Fire: Lummis Slams Move as ‘Political Theater’

Senator Cynthia Lummis torches the Federal Reserve’s retreat on crypto clarity—calling it regulatory lip service while Wall Street gets backdoor bailouts. Another case of ’innovation for thee, not for me’ from the suits in charge.

Fed’s broader regulatory approach to crypto

Lummis also pointed to the Fed’s ongoing reliance on reputation risk assessments in bank supervision, stating that the central bank did not rescind the Policy Statement in Section 9(13). 

That policy deems activities involving Bitcoin (BTC) and other cryptos as unsafe and unsound, creating regulatory hurdles for banks interested in offering crypto-related services. She argued that despite surface-level moves, the Fed continues to illegally deny fair access to crypto firms’ master accounts.

In contrast, Lummis acknowledged that theand thehave taken steps to move away from reputation-based evaluations, leaving the Fed isolated in its approach. The withdrawals come amid broader political shifts that have seen a more crypto-friendly tone in Washington. 

With President Donald Trump’s administration signaling support for digital assets, banking relationships with crypto firms are showing early signs of revival after years of strained access to traditional financial services.

Ongoing congressional focus

Lummis reiterated her commitment to legislative oversight of the Federal Reserve’s actions concerning the digital asset sector. 

She said she would continue pressing for reforms to ensure crypto firms receive “more than a life jacket” but a fair opportunity to operate within the US financial system.

The senator, a longtime advocate for integrating digital assets into the regulatory framework, has frequently called for clarification around bank supervision, master account access, and legal definitions related to cryptocurrencies. 

Her latest statement reflects continuing tensions between federal regulators and lawmakers seeking to normalize crypto within the banking system.