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Senator Cynthia Lummis, Republican of Wyoming, argued that the Fed’s delay in processing applications from cryptocurrency banks to receive accounts at the central bank “violated the law.”
On November 30 Column For the Wall Street Journal, Lummis claimed that the Federal Reserve is treating special purpose depository institutions (SPDI), also known as “Blockchain Bank‘, it’s not fair in her hometown. She called on her Republican colleagues to stop supporting Fed Chairman Jay Powell, who was reappointed by President Biden on November 23.
February 2019, Wyoming Approved by the State Assembly SPDI provides services to companies that cannot obtain banking services from the Federal Deposit Insurance Corporation (FDIC) due to transactions with cryptocurrencies.
In 2020, two SPDI Kraken and Avanti in Wyoming obtained bank licenses. Soon after, they applied for a master account with the Federal Reserve Bank of Kansas City. Their application has yet to be approved.
The state has been discussing whether SPDI should be considered a bank under federal law. In the article, Lummis claimed that SPDI should be considered a bank under federal law “without doubt” and that “Wyoming checked every box.” She added that SPDI meets the bank composition standards set by Congress in the Federal Reserve Act.
She stated that “in fact, it is illegal for the Federal Reserve to postpone the approval of SPDI, and quoted the Federal Court as saying that the Federal Reserve “is responsible for all banks and credit unions to carry out legal activities”.
related: “Thank God for giving Bitcoin,” Cynthia Lummis said when raising debt limits in the United States
October 7, Documents submitted by Lummis It was revealed that she bought an unknown amount of Bitcoin (BTC) on August 16 with a value of between US$50,001 and US$100,000.
Lummis bought it less than two weeks after she and other senators tried to gain support Amendments to support encryption Enter President Joe Biden’s Infrastructure Act.
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