Lummis Criticizes Powell’s Anti-Crypto Stance

TLDR

• Lummis accuses Powell of unfairly targeting digital assets.
• Operation Chokepoint 2.0 exemplifies regulatory overreach, Lummis claims.
• Calls for Powell’s resignation reflect growing crypto regulatory tensions.

U.S. Senator Cynthia Lummis has voiced harsh criticism of Federal Reserve Chair Jerome Powell regarding his approach to the crypto industry. Lummis accuses Powell of unfairly targeting digital assets for “absurd reasons” and has publicly called for his resignation. She further argues that the Federal Reserve displays an ongoing bias against cryptocurrencies like Bitcoin and Ethereum.

Senator Lummis, a known advocate for Bitcoin and crypto-friendly legislation, asserts that Powell has mismanaged certain policies. Among these is an initiative known as Operation Chokepoint 2.0, which she believes exemplifies regulatory overreach impacting the digital asset sector. Her comments reflect growing tension between proponents of cryptocurrency and traditional financial regulators.

Details on Accusations and Resignation Call

Lummis’s criticisms of Powell extend to allegations of politicization within the Federal Reserve’s bank supervision. She argues this poses a risk to the integrity of the financial system and the competitive edge of the United States. In a press release, Lummis commented, “While Chairman Powell asserts that the Fed has taken significant steps to adopting a more balanced approach toward digital assets, the legacy of Operation Chokepoint 2.0 and the ramifications of these harmful policies persist.”

Adding to the discourse, former President Donald Trump has also recently expressed his view that Powell should either resign or be dismissed. These calls for resignation highlight a broader debate on the Federal Reserve’s stance toward digital assets and its potential impact on financial innovation.

Community and Legislative Reactions

The cryptocurrency community is amplifying Lummis’s criticism, engaging in discussions on social media platforms like Twitter. The response reflects a shared concern about what is perceived as regulatory hostility towards digital currencies. Meanwhile, Lummis continues her legislative efforts aimed at fostering a favorable environment for digital assets in the Senate.

Recently, the passage of the GENIUS Act—a piece of legislation focusing on stablecoin regulation—demonstrates the increased attention on crypto issues in the Senate. However, there are no direct financial funding shifts recorded as a result of Lummis’s statements, though her political activity suggests a push for clearer regulatory guidelines.

Impact on Bitcoin and Ethereum

Bitcoin (BTC) and Ethereum (ETH) are specifically mentioned as targets of the perceived regulatory bias. While immediate primary on-chain data regarding the market’s response to these statements is not cited, historical trends suggest regulatory pressure can lead to outflows and volatility within centralized crypto entities.

Some speculate that a potential leadership change at the Federal Reserve could influence inflation rates, thereby impacting demand for cryptocurrencies as inflation hedges. While market responses remain uncertain, the crypto community is vigilant in its monitoring of regulatory developments.

Possible Outcomes Amid Regulatory Tension

Other lawmakers and market participants are closely observing the Federal Reserve’s actions regarding digital assets. The situation brings to mind past initiatives like Operation Choke Point, which led to a temporary de-risking from crypto and other sectors by banks. As lawmakers and regulators continue their discourse, the path for digital currencies remains under scrutiny.

No official resignation or leadership changes at the Federal Reserve have been announced. However, the ongoing dialogue between crypto advocates and regulatory bodies is likely to persist, influencing the future landscape of digital finance. For those interested in monitoring these developments, Senator Lummis’s press releases provide updated information on her stance and legislative actions.

“The Fed’s continued politization of bank supervision is a threat to both our financial system’s integrity and America’s competitive edge, and the days of the Fed hiding its policy bias and mismanagement are over.”

Cynthia Lummis, U.S. Senator