Proposal to grant limited Federal Reserve accounts to crypto and fintech firms signals a shift in U.S. payments policy and banking access.
U.S. Senator Cynthia Lummis has said a recent Federal Reserve proposal to introduce “skinny” master accounts could effectively end what the crypto industry refers to as Operation Chokepoint 2.0, a practice associated with denying banking access to crypto-related businesses. The proposal was introduced by Federal Reserve Governor Christopher Waller and would allow crypto companies, fintech startups, and payment-only banks to access restricted Federal Reserve accounts.
Unlike traditional master accounts held by commercial banks, skinny accounts would come with clear limitations, focusing primarily on payments functionality rather than full banking privileges.
According to Lummis, the framework would give digital asset companies direct access to the U.S. payments system, reducing reliance on commercial banks that may abruptly terminate relationships. She emphasized that the proposal would enable faster payments, lower costs, and improved security, while fostering innovation within a regulated structure.
Debanking concerns have been widespread across the crypto and fintech sectors. Industry figures have described Operation Chokepoint 2.0 as a coordinated effort to restrict financial access, with dozens of founders and companies reportedly losing bank accounts without clear explanations.
The proposal reflects a broader regulatory realignment in Washington, where policymakers increasingly view blockchain and fintech infrastructure as essential upgrades to the financial system. While an executive order signed earlier this year aimed to prohibit unjustified debanking, crypto executives continue to report account closures and freezes.
By offering a Federal Reserve-backed alternative, skinny accounts could act as a hedge against arbitrary banking decisions, ensuring lawful businesses can continue operating.
If implemented, the skinny account framework may represent a structural solution to crypto debanking, marking a turning point in how digital asset firms interact with the U.S. financial system and reinforcing the push toward responsible, innovation-friendly regulation.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.