Lummis backs Fed ‘skinny’ accounts to curb crypto debanking
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United States Senator Cynthia Lummis said a recent proposal from Federal Reserve Governor Christopher Waller to provide cryptocurrency firms with access to “skinny” master accounts at the central bank would effectively end debanking associated with Operation Chokepoint 2.0. Lummis highlighted this point recently on her Twitter account.
Waller outlined the concept at the Payments Innovation Conference in October. The framework would grant crypto and fintech startups — including payment-only banks — access to Federal Reserve accounts similar to traditional bank master accounts, but with certain limitations.
Lummis said the approach would halt Operation Chokepoint 2.0 and support practical payments innovation, including faster settlement, reduced costs, and enhanced security.
Governor Waller delivers a speech at the Payments Innovation Conference. Source: Federal Reserve
Operation Chokepoint 2.0 has been described as a coordinated effort to restrict banking services for crypto companies and their founders. Venture capitalist Marc Andreessen has said that more than 30 tech founders were debanked under the initiative. Journalist Ben Swann broke the story initially which you can read here.
Waller’s proposal signals a broader shift in U.S. policy discussions, with officials and lawmakers increasingly viewing cryptocurrencies and other fintech startups as part of modernizing the payments system and the broader financial sector.
In August, U.S. President Donald Trump signed an executive order prohibiting banks from debanking individuals and businesses without lawful cause.
The order also directed U.S. banking regulators, including the Federal Deposit Insurance Corporation (FDIC), to identify institutions engaged in debanking and consider fines or other penalties where appropriate.
Despite the order and the Trump administration’s supportive stance on crypto, executives and Web3 firms continued to report account closures. Ben Swann reported these instances on his Twitter, his post can be found here.
In November, Jack Mallers, CEO of Bitcoin (BTC) payments company Strike, said his accounts were closed by financial services firm JPMorgan without explanation.
Source: Jack Mallers
Mallers said that when he requested a reason, he was told the bank was not permitted to disclose one.
JP Morgan Chase also froze the bank accounts of stablecoin startups BlindPay and Kontigo in December, citing alleged exposure to sanctioned jurisdictions.
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