The U.S. Congresswoman from Wyoming, Cynthia Lummis, has been attacking the Federal Reserve Chairman Jerome Powell for his cryptocurrency policy.
Senator Cynthia Lummis of Wyoming argues that the Federal Reserve is “violating the law” by delaying the processing of account opening requests from bitcoin exchanges. She says that this is unfair to those who are waiting for their accounts to be approved without explanation.
Cynthia Lummis is an American politician and writer. She is a Republican who served as the United States Representative for Wyoming’s At-large congressional district from 2011 to 2019.
Lummis is America’s newest voice in the crypto-debate, and she has expressed that the United States might be “the next China” if they don’t act quickly to embrace digital currencies.
Lummis noted in a article published by The Wall Street Journal on Nov. 30th stating that the Federal Reserve has been unfairly punishing SME banks with its “family bank” designation, or so-called “blockchain banks.” She urged her Republican colleagues to vote against the re-appointment of Fed Chairman Powell.
In February 2019, The Wyoming state legislature approved the SPDI to serve companies unable to secure banking services from the Federal Deposit Insurance Corporation (FDIC) because of their crypto holdings. The SPDI will now be able to offer crypto-to-crypto services in order to allow companies to conduct business with other companies that can’t get banking services because of the FDIC’s regulations.
Avanti and Kraken are two SDPI companies from Wyoming that received banking licenses in 2020. They went on to apply for master accounts with the Federal Reserve Bank of Kansas City shortly after their licenses were approved. Unfortunately, they have not had their proposals approved to date.”
The statement made by Lummis raises the question of whether SPDIs should be considered banks under federal law. This can cause a lot of confusion in terms of defining these businesses and their activities. It is important to note that Wyoming has checked every field, which explains why the state’s policymakers have reached this decision.
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