Waller’s ‘skinny’ Fed accounts end Operation Chokepoint 2.0.

Waller’s “skinny” Fed master accounts aim to curb debanking and give crypto and fintech limited central-bank access amid ongoing account closures

  • Christopher Waller proposed “skinny” Federal Reserve master accounts to give crypto and fintech firms limited access to central bank services.
  • Cynthia Lummis said the plan would end what she called Operation Chokepoint 2.0 and enable payments innovation.
  • Industry figures report that debanking of crypto firms continued despite a presidential order directing fair banking enforcement.
  • Executives including Jack Mallers say banks have closed accounts or frozen funds for crypto firms without full explanations.

Christopher Waller proposed a framework in October to allow crypto and fintech startups limited access to Federal Reserve master accounts. Cynthia Lummis said the plan would stop debanking and spur faster, cheaper payments, linking to her public comment here.

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“Governor Waller’s skinny master account framework ends Operation Chokepoint 2.0 and opens the door to real payments innovation. Faster payments, lower costs, better security — this is how we build the future responsibly.”

Operation Chokepoint 2.0 is described as a coordinated effort to deny banking services to crypto companies and their founders, a claim cited in a public post linked to commentary by industry observers. Debanking means the denial or closure of banking services to a customer or business.

In August, Donald Trump issued an executive order directing regulators to stop banks from debanking Americans and to identify banks that had engaged in unjustified account closures; the order is available here. Regulators named in the order include the FDIC.

Despite the order, crypto firms report ongoing issues. Jack Mallers, CEO of Strike, posted that JPMorgan Chase closed his company’s account and would not explain the reason; his posts are linked here and here. Other startups, including BlindPay and Kontigo, reported frozen accounts after banks cited alleged exposure to sanctioned jurisdictions.

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A master account is an account at the Federal Reserve used by banks to settle payments and hold reserves. The proposed “skinny” version would provide a restricted form of that access to nonbank payment firms.

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