The withdrawal of guidance for banks on handling digital assets does not signify genuine regulatory progress, according to U.S. Senator and cryptocurrency advocate Cynthia Lummis.
The Fed withdrawing crypto guidance is just noise, not real progress. We are NOT fooled. The Fed assassinated companies within the industry and hurt American interests by stifling innovation and shuttering businesses. This fight is far from over.
— Senator Cynthia Lummis (@SenLummis) April 25, 2025
“This is just noise, not real progress. We are not fooled. The Fed killed companies in the industry and harmed American interests by stifling innovation and shutting down businesses. This fight is far from over,” the senator stated.
The matter concerns the withdrawal of a set of recommendations that restrained banks from engaging with digital assets.
According to the Fed’s announcement, with the cancellation of the “anti-crypto” guidance, the regulator will no longer require financial institutions to provide prior notice of plans or ongoing operations involving cryptocurrencies. Any actions related to digital assets will be monitored under the standard supervisory process.
“I will continue to hold the Fed accountable until the digital asset industry receives more than just a lifeline, Chairman [Jerome] Powell, [crypto businesses] need a fair deal,” Lummis added.
Back in January, the U.S. Securities and Exchange Commission rescinded rule SAB 121, which effectively prohibited banks from holding digital assets.