Senator Cynthia Ramis, an evangelist for SBR, said he will continue to hold the Fed accountable until Crypto is fully supported. This relates to the withdrawal of crypto rules for banks where the Fed has ended its “chokepoint” practice.
According to Report, Ramis said she would. “We will continue to be accountable to the Fed until the digital asset industry acquires more than just a life jacket.”
Lummis and the Fed – non-functional relationship
Ramis was on the first line to reveal the Federal Reserve involvement in breaking out the crypto industry under former President Joe Biden. The Fed had internal guidelines, instructing staff to handle “controversial” clients, including crypto companies.
Many leaders in the crypto industry said they and their companies were turned down because of traditional banking services because of the involvement of the crypto industry. Since he was re-inaugurated, Trump has made his top goal to end this bias against crypto banks called “Operation Chalk Point 2.0.”
Nathan McCauley, CEO of Anchorage Digital Bank, was so bad at Nathan McCauley, the only crypto bank with a national charter. I said, “I was talking to the rooms of about 100 Crypto founders in San Francisco. I asked them to get a hand and if they were struggling to get or maintain a bank account. All their hands were up.”
Luckily, her efforts carried fruit for the crypto industry. On Thursday, the Fed announced that member banks will no longer need to provide advance notices on crypto and stubcoin-related projects. Instead, the Fed sees how banks interact with digital assets, as well as other activities.
“The board is withdrawing the letter of the 2022 supervision establishing expectations that state member banks will provide advance notice of planned or current crypto asset activities.” The Federal Reserve said.
Changes to rules will not give crypto-centric banks access to “master accounts”
To allow agencies to use Federal Reserve payment methods and resolve transactions with central bank money, they must have a master account with the Federal Reserve Bank.
However, the Fed has become more friendly, but changes to the rules prevent crypto-focused banks from accessing their master accounts. These master accounts are essential items for crypto banks to provide meaningful services to customers across the country.
For years, the Fed has refused to provide these types of accounts to crypto-centric banks such as Kraken Financial and Custodia.
The deprecation of chokepoints is the first step towards the goal of cryptographic entities’ freedom. Despite concerns from the Crypto community, the Fed refuses this change Powell’s Trump and beef, the decision has already been made.
Crypto stakeholders believe the Fed is willing to ensure that Crypto not only advances but supports other crypto adoption agendas.
The offices of the Federal Reserve, Federal Deposit Insurance Corporation and the Secretary of Currency have also regained two comments they made in 2023. It was about banks working with people in the Crypto-Asset sector who could be fraudsters.
“Inaccurate or misleading expressions and disclosures by crypto companies (…) can be unfair, deceptive or abusive, contributing to serious harm to retail and institutional investors.” The agency said.
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