Pro-Bitcoin Senator Cynthia Lummis Pushes Back Against Powell's Nomination Over Crypto Policy

Pro-Bitcoin Senator Cynthia Lummis Pushes Back Against Powell's Nomination Over Crypto Policy

Republican Wyoming Senator Cynthia Lummis — widely known for her pro-Bitcoin BTC/USD stances — urged the Republican party to block the renomination of Jay Powell as the chairman of the Federal Reserve over his crypto policies.

What Happened: Lummis cited concerns to the so-called Special Purpose Depository Institutions (SPDIs), which are a new type of crypto-native bank allowed to operate in Wyoming through a special banking charter, according to a Wednesday Decrypt report.

In a Wednesday op-ed, she said the banking ambitions of those banks are blocked because the Federal Reserve does not approve their applications to receive accounts at a central bank.

Lummis believes that the delays in the approval are a deliberate and unlawful obstruction. According to her, the Federal Reserve's rationale for the delay — the need to deliberate whether SPDIs are banks — is not valid since the Wyoming entities have all the features needed to qualify for being a bank under the Federal Reserve Act.

The senator believes that the central bank's treatment of SPDIs is "a dereliction of legal obligations" by the institution.

Lummis is known to also be a Bitcoin investor. Notably, her first Bitcoin investment was up 10,000% at the end of June of this year.

Posted In: Cynthia LummisJerome PowellCryptocurrencyMarkets

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