U.S. Senator Cynthia Lummis has criticized Michael Barr, Vice Chair for Supervision at the Federal Reserve, for his role in what she describes as "Operation Chokepoint 2.0." Lummis claims this initiative has negatively impacted Wyoming's digital asset industry. The statement was made on X on January 6.
"Michael Barr has completely failed to fulfill his duties as Vice Chair for Supervision at every turn, enabling Operation Chokepoint 2.0," said Cynthia Lummis, Senantor. "It's high time for the Federal Reserve to return to being accountable to the law, Congress and the American people. We need a responsible regulator at the helm. I am looking forward to working with President Trump to make that happen."
According to Lexology, Operation Chokepoint 2.0 is a federal regulatory effort aimed at pressuring banks to sever ties with cryptocurrency-related businesses. Regulators have reportedly used terms like "reputational risk" to justify these actions, resulting in financial exclusion and significant challenges for the cryptocurrency sector.
Signature Bank, known for its substantial connections to cryptocurrency businesses and a high percentage of uninsured deposits, was closed by the New York State Department of Financial Services on March 12, 2023. This occurred amid withdrawal pressures following the collapse of Silicon Valley Bank. At the time of its closure, Signature Bank's failure ranked as the third-largest in U.S. history. While federal regulators described the seizure as necessary to protect the U.S. economy, some perceived it as part of a broader effort targeting cryptocurrency businesses, according to Nasdaq.
Lummis was sworn into the U.S. Senate on January 3, 2021, becoming Wyoming's first female senator. Before her Senate tenure, she served as a U.S. Representative for Wyoming from 2008 to 2016 and held positions as Wyoming State Treasurer and a member of both the Wyoming State House and Senate over a span of 14 years. She holds degrees in animal science, biology, and law from the University of Wyoming and has experience in ranching and public service.