Senator Lummis Criticizes Fed’s Crypto Policies

• Lyla Velez
• July 24, 2025
• Policy
• 0 Comments

Senator Cynthia Lummis accused Federal Reserve Chairman Jerome Powell of bias against crypto on June 25, 2025, during a Senate Banking Committee hearing in Washington, D.C.

Lummis’s accusation highlights ongoing tensions between crypto advocates and regulators. The broader implications include a potential impact on U.S. crypto industry’s competitiveness and banking relations.

Tensions Between Senator Lummis and Jerome Powell

The tension between Senator Cynthia Lummis and Jerome Powell focuses on alleged regulatory bias against crypto firms. Lummis claims the Fed’s conduct has harmed America’s competitive position in the crypto space.

Lummis Challenges Fed’s Policies

During the Senate Banking Committee hearing, Lummis specifically questioned the Fed’s policies, accusing it of unfairly targeting and mismanaging crypto regulations. Powell has dismissed similar allegations in the past, citing security concerns.

“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.” — Senator Cynthia Lummis, U.S. Senate

Immediate effects include potential challenges for crypto firms in obtaining banking services due to perceived risks. This could lead to decreased liquidity and hinder industry growth, particularly for U.S.-based innovators.

Financial and Political Implications

Financial impacts may extend to the broader crypto market, affecting Bitcoin and other digital assets. Politically, the discussion intensifies the debate over necessary regulatory frameworks and the Federal Reserve’s role.

Increasing Regulatory Scrutiny

As regulatory scrutiny increases, crypto businesses might face operational hurdles. Historical trends show regulatory pressure coinciding with financial constraints such as reduced banking access, leading to liquidity issues. Past incidents, like Operation Chokepoint, saw similar industry impacts.