Senator Lummis Criticizes Powell’s Anti-Crypto Policies

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

Senator Cynthia Lummis has criticized Federal Reserve Chair Jerome Powell for anti-crypto policies in a recent U.S. Senate address.

Lummis’s criticism underscores potential impacts of Fed policies on America’s technological and financial competitiveness.

Senator Cynthia Lummis’s Open Criticism

Senator Cynthia Lummis has openly criticized Jerome Powell’s leadership at the Federal Reserve. Lummis argues that the policy legacy, particularly “Operation Chokepoint 2.0”, continues to harm the U.S. banking system. Powell is deemed hostile towards digital innovation.

Lummis highlights the Fed’s alleged bias against cryptocurrencies, including Bitcoin. She claims these financial policies restrict innovation. The senator further points out that the continued politicization of banking supervision poses a significant threat.

“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

The Federal Reserve’s stance directly affects U.S. banks and cryptocurrency markets. Digital asset liquidity, particularly for DeFi and Layer 1/Layer 2 protocols, faces new challenges. Lummis suggests this could lead to negative economic repercussions.

There are profound implications for institutional investors and crypto developers in the U.S., facing barriers to growth. As regulatory scrutiny increases, innovation may shift offshore, affecting the nation’s financial industry.

These developments suggest policymakers might reconsider the balance between financial regulation and innovation. Historical actions against high-risk industries inform recent criticisms. The crypto industry continues to scrutinize the Fed’s regulatory trajectory.