US senator Cynthia Lummis expressed his criticism of the Federal Reserve for withdrawing the guidance on crypto assets. Lummis said that this step does not make progress in the sector and that it creates regulatory obstacles to force the sector. In his statements, he emphasized that the approach adopted by the FED prevented innovation.
Fed Criticism
The FED withdrew certain audit letters that affect the access of crypto businesses to banking services. These letters wanted to get permission in advance for the Stablecoins. This decision of the Fed seems to be parallel to the more flexible approaches of similar regulatory institutions.
Senator Lummis said that the guidance of Fed did not solve the main problems of the sector. Lummis said that the basic problems experienced by the crypto asset industry cannot be solved by this step.
“The Fed’s withdrawal of crypto guidance is not a real progress; we deserve better.” – Cynthia lummis
More for crypto coins
Lummis pointed out that the Fed’s restrictive arrangements in the past have caused crypto businesses to be closed and innovation is interrupted. Stating that this situation damages American interests, emphasized the necessity of a more fair regulation.
In addition, Senator Lummis criticized the fact that the master accounts required for banking services were not regulated. He pointed out that crypto asset enterprises cannot operate on equal terms with traditional companies.
Similar opinions were included in the notifications from the sector representatives. Some experts, the FED published in 2023 and crypto assets insecure directives, he said. These developments reveal the effects of the regulatory attitude on the sector. In summary, although the Fed has taken supportive steps for crypto currencies, it has not yet been softened at the desired level.
In general, the Fed’s policy changes to the crypto sector increase the regulatory challenges faced by the digital asset industry. Observations show that sector representatives continue to expect a more fair and inclusive regulation.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
