On July 15, 2025, Senator Cynthia Lummis (R-WY) demanded Federal Reserve Chair Jerome Powell’s resignation, blasting his digital asset policies for stifling crypto innovation, particularly through the alleged Operation Chokepoint 2.0. X posts from @DeItaone quote Lummis claiming Powell “set back American innovation decades” by limiting Bitcoin’s role. According to Reuters, she backed Senator Bernie Moreno in criticizing Powell’s opposition to a Strategic Bitcoin Reserve, pointing out that the Fed lacked the legal right to store BTC under the Federal Reserve Act. According to her website, her BITCOIN Act suggests that the United States purchase one million bitcoins over a five-year period.
Lummis, leading the Senate Banking Subcommittee on Digital Assets, accuses Powell of enabling Operation Chokepoint 2.0, which allegedly pressured banks to restrict crypto accounts, per CoinDesk. Her January 2025 letter to the FDIC demanded preservation of related evidence, per Coinspeaker. Powell’s December 2024 claim that the Fed cannot own Bitcoin without legislative changes, per Reuters, conflicts with Lummis’ vision of a $16 trillion BTC reserve to offset the $36 trillion U.S. debt, per Bitcoinist. X posts from @CryptosR_Us highlight her push to grant the Fed BTC-holding powers. Claims of U.S. Bitcoin reserve sales lack evidence, with 69,000 seized BTC ($6.9 billion) still held, per CoinDesk.
Lummis’ bold move, amplified by X posts from @BitcoinMagazine, coincides with Bitcoin trading at $123,091.61 and 61.29% dominance, per CoinMarketCap. The GENIUS Act’s stablecoin framework and Trump’s pro-crypto executive order on January 23, 2025, per WisdomTree, signal a favorable regulatory shift, boosting DeFi and altcoin markets. Barclays warns that funding a BTC reserve via Treasury debt could face Fed pushback, per Reuters. Senator Elizabeth Warren’s concerns about crypto’s systemic risks, per The New York Times, contrast with Michael Saylor’s $590 trillion crypto market forecast under clear regulations, per Coinspeaker.
Lummis’ pressure could fast-track pro-crypto laws like the BITCOIN Act, enabling BTC purchases from existing reserves, per Bitcoinist. Investors should watch BTC’s $120,000–$123,000 resistance and altcoin gains, with ETH ($3,811) and SOL ($197.50) rising, per CoinMarketCap. A dip to BTC’s $116,700 support could be a buying opportunity, per CCN. Diversify into ETH or ADA to manage volatility, and follow @SenLummis on X for policy updates. While Lummis’ push may reshape Fed policy, Powell’s resistance and state-level hurdles, per crypto.news, require careful navigation in the Crypto Market.
