U.S. Senator Cynthia Lummis has launched a scathing attack on Federal Reserve Chair Jerome Powell, accusing him of mismanaging the controversial "Operation Chokepoint 2.0" ๐ฆ๐ซ โ a move she claims unfairly targeted crypto companies, energy firms, and even led to the downfall of solvent banks ๐ฃ.
๐ฌ โPowell Must Go,โ Says Lummis
Speaking out on July 22, Lummis didnโt mince words. She said Powellโs handling of the situation lacked transparency and accountability. According to her, the Fed, under Powellโs leadership, failed to protect financial institutions from being pressured into cutting ties with digital asset firms.
> โThe Fed has become hostile toward innovation, especially in the crypto space,โ Lummis declared.
โJerome Powellโs weasel words are no longer enough. Powell must go.โ ๐ผ๐ท
๐ต๏ธ What is Operation Chokepoint 2.0?
Operation Chokepoint 2.0 is the name given to alleged coordinated efforts by federal agencies โ including the Fed โ to pressure banks into closing accounts or denying services to politically disfavored industries such as crypto and oil & gas โ๏ธ๐ป.
While Powell previously denied any formal policy to debank crypto companies, critics argue that regulators were silently pushing an anti-crypto agenda from behind the scenes.
๐๏ธ $2.5 Billion Fed HQ Controversy
Adding fuel to the fire, Lummis also backed Rep. Anna Paulina Lunaโs referral of Powell to the Department of Justice over perjury allegations. At the heart of this referral is the planned construction of a $2.5 billion Fed headquarters โ a project already $700 million over budget ๐๏ธ๐ธ.
Lummis questioned the spending, calling it โout of touch with reality during inflationary times.โ
๐ฎ Why It Matters
๐ฐ For crypto investors: Powellโs removal could open doors for a more crypto-friendly Fed.
๐๏ธ For U.S. governance: The independence of the Fed is under scrutiny amid rising political pressure.
๐ For markets: Any leadership shakeup at the Federal Reserve could spark market volatility.
๐จ Final Thoughts
Sen. Lummis's call for Powellโs resignation is one of the strongest criticisms yet from Capitol Hill. Whether Powell survives this political storm or not, one thing is clear: the battle over the future of finance โ and the role of crypto โ is just getting started โ๏ธ๐.
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