U.S. Senator Slams Federal Reserve for Failing to Deliver True Crypto Reform
Senator Cynthia Lummis, one of Washington’s strongest advocates for cryptocurrency, has sharply criticized the Federal Reserve’s latest move on crypto regulation, calling it a hollow gesture that does little to solve the industry’s ongoing struggles.
Last week, the Fed reversed several Biden-era policies that had discouraged banks from servicing crypto clients — a shift some saw as a positive sign under the Trump administration.
However, Lummis dismissed the move as “lip service,” arguing that the Fed continues to choke innovation and block businesses from accessing crucial financial services. “This fight is far from over,” she wrote in a statement posted to X.
Despite scrapping older guidance, the central bank left a key 2023 policy in place that forces state-linked banks to seek approval before offering crypto products.
Lummis and other critics say this half-measure only deepens the confusion around digital asset regulation.
Adding to her concerns, Lummis accused the Fed of continuing to weaponize “reputational risk” claims — an approach that allows the agency to quietly deny banking services to legally operating industries like crypto without offering solid financial reasons.
She vowed to keep pressing the Fed for real reform that moves beyond symbolic gestures.
Kosta has reported on cryptocurrency markets and blockchain infrastructure since 2020, bringing over six years of hands-on experience in the crypto industry built through daily tracking of markets, trends, and emerging blockchain developments. Specializing in Bitcoin on-chain analysis, institutional ETF flows, and digital asset price action, his work at Coindoo has been cited by other news agencies and consistently covers market developments with a focus on data-driven reporting across Bitcoin, Ethereum, Solana, and XRP. Over the years, Kosta has contributed to multiple crypto media outlets in different regions, authoring over 6,000 articles across the sector. His reporting spans cryptocurrency markets and the broader fintech industry, tracking not only price action but also the technological and regulatory forces shaping the ecosystem. To support his analysis, Kosta actively leverages on-chain data and metrics from leading platforms such as Santiment, Glassnode, and CryptoQuant, enabling deeper, evidence-based market insights. He believes in the power of transparency and the data that underpins the blockchain ecosystem. His academic background in Marketing Management from Denmark further complements his analytical approach, adding a strong understanding of communication strategy and content positioning to his work.
