Emre Yumlu 
U.S. Senator Cynthia Lummis cautioned that the crypto industry might be celebrating too soon after the Federal Reserve loosened certain restrictions on crypto banking.
Calling the move “just noise, not real progress,” Lummis criticized the Fed’s decision on April 25 via a post on X, arguing that the withdrawal of its 2022 supervisory letter — which had previously discouraged banks from engaging with crypto and stablecoins — was mere “lip service.”
A Divergent Voice Amid Crypto Optimism
While industry leaders like Michael Saylor and Anthony Pompliano welcomed the Fed’s latest action, Lummis adopted a far more cautious tone.
Having introduced the Bitcoin Strategic Reserve Act in July 2024, Lummis emphasized that the Fed is still violating laws concerning master accounts and continues to use reputational risk as a supervisory tool when evaluating banks.
Her remarks come at a time when the Federal Deposit Insurance Corporation (FDIC) is reportedly drafting a rule that would prevent regulators from considering reputational risk in bank examinations.
Lummis also noted that the Fed’s Section 9(13) policy statement remains intact, where Bitcoin and other digital assets are still labeled as “unsafe and unsound.”
Additionally, she pointed out that several officials involved in the controversial “Operation Chokepoint 2.0” effort are still active in shaping crypto regulations today.
“We are not fooled. The Fed deliberately targeted companies in the crypto sector, stifled American innovation, and shuttered businesses,” Lummis stated.
“This battle is far from over. Until the digital asset industry receives more than a life raft — until it gets a fair chance — I will continue holding the Fed accountable,” she added, directly addressing Fed Chair Jerome Powell.
Support from Custodia Bank CEO
Caitlin Long, founder and CEO of Custodia Bank, echoed Lummis’ skepticism, thanking her for “seeing this for what it really is.”
However, much of the broader crypto community viewed the Fed’s decision as a positive milestone.
Michael Saylor declared in an April 25 post that “banks are now free to support Bitcoin.“
Meanwhile, Anastasija Plotnikova, co-founder and CEO of blockchain compliance firm Fideum, described the move as a “key development that will pave the way for institutional adoption.”
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