Wyoming senator blasts Federal Reserve for crypto banking delay

Republican senator Cynthia Lummis has criticized the US Federal Reserve, arguing that it is “violating the law” by delaying the process for crypto-native banks to obtain an account from the central bank.

Lummis is reported to have been the first US senator to own cryptocurrency, buying Bitcoin in 2013, and has long backed Wyoming’s bid to launch Special Purpose Depository Institutions (SPDIs), or blockchain banks.

According to Lummis, the Federal Reserve is discriminating against SPDIs. She has called on her colleagues to withhold support for Jay Powell, President Joe Biden’s nominee for the Federal Reserve chair, unless Wyoming’s crypto enterprises are allowed to forge ahead.

Wyoming introduced a bill that enables the creation of SPDIs in 2019 but those organizations couldn’t start work because the Federal Deposit Insurance Corporation (FDIC) refused to deal with entities that were involved with crypto.

Lummis has also argued that SPDIs can “without any doubt” be considered banks under federal law.

“Wyoming checked every box”, she said, using the opportunity to blast the Federal Reserve for failure to issue the necessary permits.

Lummis explained that the Federal Reserve “has a duty to give payment system access to all banks and credit unions conducting legal activities”.

Wyoming previously voted on a sports betting bill and allowed operators in the state to accept bets in crypto.

As the state is figuring out the regulatory framework, you may join the sports betting action at sites such as Sportsbet.io, 1xBit or Cloudbet.

Looking for your next crypto casino? Check out: Bitcasino, Gamb.co or FortuneJack.

Written by Alex


Alex is a well-rounded crypto writer who focuses on general market and legal developments. His main interest lies in how crypto gaming can become a more permanent part of the gaming landscape and how blockchain holds benefits to players they are not even aware of.

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