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Republican senator Cynthia Lummis claims that Fed is breaking the law by delaying the Wyoming blockchain bank

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Senator Cynthia Lummis of Wyoming claims the Federal Reserve is “acting illegally”. By postponing the approval of requests from crypto-native banks to open accounts with the central bank.
She has urged her colleagues to vote against Fed Chairperson Jay Powell.

The Wyoming state legislature established SPDIs in February 2019. In order to help firms who are unable to acquire banking products and services from the Federal Deposit Insurance Corporation (FDIC). Due to their cryptocurrency activities.

Kraken and Avanti, two Wyoming SPDIs, will guarantee bank licences in 2020. They registered for master accounts with the Federal Reserve Bank of Kansas City not long later. Their requests are still pending.

On the other hand, Lummis alleged in a Wall Street Journal op-ed on Nov. 30 that the Fed was unjustly penalising Special Purpose Depository Institutions (SPDIs), commonly known as “blockchain banks,” in her home county. Furthermore, she urged her Republican colleagues to vote no on President Biden’s re-appointment of Federal Reserve Chairman Jay Powell on November 23.

“Wyoming checked every box”

The government is debating if SPDIs should receive treatment as banks under federal law. Lummis asserted in the paper that SPDIs must be designated banks under federal law “without even a doubt”. And also that “Wyoming checked every box”. She went on to say that SPDIs fit the Federal Reserve Act’s definition of a bank. Which set by Congress.
She said that the Fed is “in reality breaking the law” by prolonging permission of the SPDI. Noting federal court rulings that the Fed “has a duty to offer payment system access to all banks and credit unions, doing an authorized activity”.

Republican senator Cynthia Lummis number of Bitcoins (BTC) valued between $50,001 and $100,000

Cynthia Lummis filed records on Oct. 7 showing that on Aug. 16, she acquired an undisclosed number of Bitcoins (BTC) valued between $50,001 and $100,000.
Lummis placed the order only about two weeks after she and several senators tried to get President Joe Biden’s stimulus plan to include a pro-crypto provision.

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