US Wyoming Senator Cynthia Lummis said that the withdrawal of Federal Reserve’s crypto guidelines for banks did not have a real impact, it was a demonstration step. Lummis said that the steps taken by the Fed in his sharing on social media were only for image purposes.
Fed’s explanations
Federal Reserve, the Federal Deposit Insurance Institution and Monetary Supervision Office in a study carried out together, announced that the banks of banks withdrew their previous instructions on crypto assets. The official statement said, “The Federal Reserve Board withdrew the guidelines of banks’ crypto assets and dollar -based token activities on Thursday,”.
The Federal Reserve Board announced on Thursday that banks withdrew the instructions for crypto asset activities, but they did not leave their goals to stay in compliance with the risks that develop with this step.
Criticisms from Senator Lummis
Senator Lummis, arguing that the transaction was superficial, said the FED still consider the concept of reputation risk under the supervision of banks. According to the statement, the Fed did not abolish the policy that describes Bitcoin and other crypto assets as insecure. He also criticized that legal regulations have been ignored in the main account applications of crypto banks.
Lummis, at the same time the FED is still in the crypto asset sector to organize the former personnel to work and this situation does not benefit the softening efforts, he said. Senator pointed out that the transaction was insufficient in these statements and implied that more comprehensive steps should be taken in regulatory corporate policies.
It is thought that the FED’s move with the directive withdrawal can have various effects on the banking system and the digital asset market. Although the authorities state that regulatory steps aim to establish a balance between innovation and security, there are different opinions.
The steps and criticisms show show that the regulatory approach needs a more comprehensive assessment. Developments on the subject and possible regulation changes will be closely monitored.
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.
