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Sure, here’s the rewritten version of the article, optimized for SEO while retaining all original content, length, and key points:
Republican Senator Cynthia Lummis Calls for Federal Reserve Chair Jerome Powell’s Resignation
Republican Senator Cynthia Lummis has ramped up her demand for the resignation of Federal Reserve Chair Jerome Powell, pointing to leadership concerns and controversies surrounding the central bank’s recent policies.
In a significant development reported by Bitcoin.com, Lummis expressed her sentiments on October 21 via X (formerly Twitter), lauding the Federal Reserve’s decision to eliminate “reputational risk” from its supervisory guidance for banks. She hailed the move as a substantial “victory” but emphasized that “there is still more work to be done,” reaffirming her objections to Powell’s leadership. Her latest criticism builds on an earlier post shared on October 9, where she declared that Powell’s repeated missteps as chief of the Federal Reserve render him unqualified for his role and called for his immediate resignation.
As a chair of the Senate Financial Innovation Caucus, Lummis has established herself as a vocal critic of Powell’s performance. During a recent Fox News interview, she listed a series of contentious issues linked to Powell’s tenure, including alleged regulatory failures, the controversial “Operation Choke Point 2.0,” and escalating budget concerns tied to the Federal Reserve’s headquarters renovation project. Lummis argued that these incidents collectively showcase what she described as Powell’s failure to provide effective leadership.
Operation Choke Point 2.0, Regulatory Policies, and Industry Backlash
Central to the controversy is “Operation Choke Point 2.0,” a term used to describe regulatory strategies enacted under the Biden administration. These measures aimed to restrict banks from delivering services to digital asset firms and barred the issuance of banking licenses to those operating in the cryptocurrency and blockchain sectors. Critics suggest that the Federal Reserve played a key role in these efforts, stifling the growth of the burgeoning digital asset industry. In January 2023, the Federal Reserve took a firm stance, claiming that issuing digital assets via decentralized networks is “fundamentally incompatible with banking activities,” sparking widespread criticism for slowing down innovation in the financial sector.
However, the Federal Reserve has recently taken steps to address these concerns. With encouragement from directives established during the Trump administration, the central bank officially removed “reputational risk” as a factor in its regulatory framework. Previously, many banks refrained from working with crypto and digital asset firms due to fears of reputational damage—a policy shift that observers hope will mark a turning point for the industry’s future growth.
Despite these advancements, Senator Lummis remains steadfast in her criticism of Powell, asserting that the earlier fixation on reputational risk inflicted significant harm on the digital asset sector. She notes how many firms in the industry faced substantial setbacks, including losing banking partnerships, as a direct result of these policies. Lummis views this as yet another reason to press forward with calls for Powell to step down.
The continued friction reflects deeper challenges as U.S. regulators and policymakers navigate the complex and evolving role of digital assets in the finance ecosystem. With divergent perspectives on innovation, oversight, and regulation, debates like this one highlight the balancing act required to foster growth while maintaining financial stability.
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