Cynthia Lummis: “The Fed is illegally delaying the registration of cryptocurrency companies in Wyoming”
Cynthia Lummis does not support the reappointment of Jerome Powell and Deputy Lael Brainard as Fed Chairperson due to their relationship to cryptocurrencies.
Wyoming Senator Cynthia Lummis has said she will oppose the reappointment of Jerome Powell as chairman of the US Federal Reserve. She is ready to urge other senators to vote against if the Fed does not make a decision soon to approve cryptocurrency companies in Wyoming.
In her article, Lammis wrote that over the past year, her faith in the Fed has been “deeply shaken by the state’s resolution of the issue of cryptocurrencies”. She explained that in 2019, Wyoming created a tightly regulated banking structure and began discussing with the Fed whether cryptocurrency companies could be considered banks and gain access to the federal payment system.
So, the Kraken exchange and the Avanti cryptocurrency bank, which received a special depository institution (SPDI) license from the Wyoming regulator in 2020, have not yet been approved by the Fed. The regulator says it still cannot determine if they qualify as banks.
Lummis believes that delaying registration is an offense, since in 1994 the US Congress required the Fed to rule on all bank filings during the year. The senator said that given the Fed’s current policy towards the cryptocurrency industry, she is “deeply concerned” about Powell and Lael Brainard’s nomination for the Fed’s posts.
In the article, Lummis asks how these “smart and skilled” professionals, who said they were interested in promoting financial innovation, rather than using Wyoming as a testing ground for their stated initiatives, choose to ignore their legal responsibilities.
Wyoming is quite loyal to cryptocurrencies. In August, the state passed legislation to attract miners and cryptocurrency companies into its jurisdiction. In July, Wyoming regulators approved the launch of the American CryptoFed DAO, the first autonomous decentralized organization in the United States.
However, US regulators are not happy with Wyoming’s free policy on cryptocurrencies. In October, the US Securities and Exchange Commission (SEC) rejected an application for token registration from DAO American CryptoFed because the company provided investors with “misleading information.”