When Donald Trump ordered the removal of Federal Reserve Governor Lisa Cook , the move reignited debate over the central bank’s independence and raised questions about what this means for both traditional finance and the crypto sector.

A lack of oversight at the Fed

Steven McClurg, CEO at Canary Capital, told TheStreet Roundtable's Alp Gasimov that while the Federal Reserve often stresses its independence, its unchecked power has drawn scrutiny.

“They literally control the economy in the U.S.,” McClurg said. “So oversight is extremely important, first of all.”

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The Fed’s role extends beyond interest-rate policy and directly into banking access, McClurg noted. He pointed to the experience of Custodia Bank, led by Caitlin Long, which was denied membership in the Federal Reserve system.

“Here in the U.S., when a lot of companies were being debanked, those orders were actually coming from the Fed and from the FDIC,” he explained. “They played a lot of dirty ball to get her out of there.”

For crypto firms, the consequences of that stance have been severe. Access to banking rails remains one of the biggest bottlenecks for digital-asset companies trying to operate in compliance with U.S. law.

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McClurg argued that more executive and congressional oversight could force the Fed to take a more balanced approach.

“I actually think that an investigation into the Fed is warranted and a lot more oversight is certainly necessary to really clean that organization,” he said

Crypto sees opportunity as Fed independence faces new test

Markets are now left to consider how Trump’s challenge to Fed independence could reshape policy.

Traditional investors will be watching interest-rate decisions , but digital-asset advocates see a chance for systemic change that could loosen the central bank’s grip over crypto banking.

Whether this amounts to a political power play or a structural reset, McClurg’s view underscores that the outcome will reverberate across asset classes.

“Oversight is extremely important,” he repeated, framing Trump’s maneuver as less about one governor and more about the balance of power between the Fed and the elected branches of government.

This story was originally reported by TheStreet on Aug 29, 2025, where it first appeared in the Policy section. Add TheStreet as a Preferred Source by clicking here.