Senator Lummis Criticizes Fed Withdrawal of Crypto Guidance Amid Regulatory Uncertainty

Senator Cynthia Lummis, known for her pro-crypto stance, has sharply criticized the Federal Reserve for withdrawing its guidance on crypto asset regulation. She argues that the decision not only undermines American interests but also stifles innovation within the digital asset industry. The policy shift has led to a mix of cautious optimism and regulatory concern across the market. In response to the withdrawal, Bitcoin experienced a 1.2% increase while Ethereum gained 0.4%. Despite these modest gains, Lummis underscored the need for a supportive regulatory framework that provides clear, long-term guidelines rather than temporary measures. Her comments reflect broader market concerns about the impact of inconsistent regulatory signals on both institutional investment and sustained growth in the crypto space. The overall narrative suggests that while immediate market reactions may appear positive, the underlying uncertainty could pose challenges to long-term investment and innovation.