Crypto's favorite senator, Cynthia Lummis, just torched the Federal Reserve's latest policy update, calling it "lip service" while the industry remains choked.

The Fed thinks they can rescind a few letters and suddenly everyone will forget about Operation Chokepoint 2.0 – Lummis isn't buying it.

What does Washington’s greatest crypto proponent see that the rest of the industry might be missing? 

The Fed's Weak Attempt At Looking Crypto-Friendly

On April 24th, the Fed announced that it is pulling back some restrictive guidance from 2022 that required banks to jump through hoops for crypto activities.

They're saying banks no longer need special permission to handle digital assets – they just need to follow standard procedures.

Crypto leaders like Saylor and Pomp started celebrating as if it were bull market Christmas.

Lummis Drops The Truth Bomb

"The Fed assassinated companies within the industry and hurt American interests by stifling innovation and shuttering businesses. This fight is far from over," Lummis posted on X.

She's pointing out that Section 9(13) still refers to Bitcoin as "unsafe and unsound" – withdrawing one letter while keeping that in place is essentially useless.

It's like saying "you're welcome in my house" while keeping the door locked and the guard dogs unleashed.

The Real Problems Still Exist

Banks still can't obtain master accounts if they even consider crypto – the Fed has been dragging its feet for years.

"Reputational risk" remains the magic phrase the Fed uses to block crypto companies from banking services.

Lummis straight up says the Fed is "illegally flouting the law on master accounts" and nobody's doing anything about it.

Operation Chokepoint 2.0 Lives On

The same individuals who orchestrated the anti-crypto crackdown are still in charge at the Fed.

They're just better at hiding it now – instead of outright bans, they use bureaucratic delays and vague risk assessments.

Crypto companies are still struggling, but with a friendlier press release attached.

The Industry's Mixed Reaction

Some folks are taking the win, thinking any progress is good progress in this regulatory hellscape.

Others, like Custodia Bank CEO Caitlin Long, are backing Lummis – thanking her for "seeing this for what it is."

The divide shows precisely why the Fed's move is so devious – it gives false hope while changing nothing substantial.

What Lummis Wants Next

She's not asking for much – just actual fair treatment instead of pretend reforms.

"The digital asset industry deserves more than a life jacket – it needs a fair shake," she says.

That means clearing out the anti-crypto officials and creating real, consistent rules that don't change with the wind.

The Fight Continues

The Fed thought they could throw some breadcrumbs and calm everyone down.

Lummis just made it clear she's not falling for the show – and neither should the industry.

Until Section 9(13) is gone and master accounts flow freely, this "crypto-friendly" Fed is just smoke and mirrors.