Debanking Crypto? Senator Cynthia Lummis Bets Big on the Fed’s "Skinny Accounts"

The old guard of finance is getting a direct challenge from Capitol Hill. Senator Cynthia Lummis is pushing a radical idea: let crypto firms use the Federal Reserve's payment rails directly, bypassing traditional banks entirely. It's a move that could rewrite the rules of digital finance.

The Skinny Account Gambit

Forget waiting for a bank's approval. Lummis's bet hinges on so-called "master accounts" at the Fed—often dubbed "skinny accounts." These aren't your standard checking accounts; they're limited-access passes to the core payment system. The goal? Cut out the middleman. Crypto businesses could settle transactions in real-time, using the same infrastructure that moves trillions for Wall Street, without needing a commercial bank as a chaperone.

A System Under Pressure

This isn't just theory. The push comes as many crypto firms find themselves "debanked"—locked out of traditional banking services over perceived risk. Lummis's play argues that if the private sector won't provide the plumbing, the public sector should. It's a free-market argument with a big-government twist, proposing the Fed as the ultimate utility for a sector it once viewed with deep skepticism.

Balancing Innovation and Stability

Proponents see a win for financial inclusion and technological progress. Critics see a regulatory nightmare waiting to happen—extending the Fed's balance sheet to volatile assets. The Fed itself has moved cautiously, wary of becoming the lender of last resort for an industry still defining its rules. It's the classic Washington dance: innovation sprints ahead while regulation shuffles to catch up.

The move is a stark reminder that in finance, the most powerful innovation sometimes isn't a new token, but a new way to access the old system. After all, what's more disruptive than letting the newcomers use the front door? Just don't expect the banking lobby to welcome them with open arms—unless there's a hefty fee attached, of course.

In brief

• Cynthia Lummis supports the “skinny master accounts” proposed by the Fed to give crypto companies access to banking infrastructure.
• This measure aims to put an end to debanking, a practice which has affected more than 30 crypto business founders.
• If adopted, this solution could reduce transaction costs, accelerate innovation and strengthen the competitiveness of crypto businesses.

Cynthia Lummis and the Fed: a solution to end crypto debanking?

Cynthia Lummis, Republican Senator from Wyoming and a pro-crypto figure, supports the proposal of Christopher Waller, Fed Governor. He suggests offering “skinny master accounts” to crypto companies, giving them limited but direct access to federal payment infrastructures. The goal? To end Operation Chokepoint 2.0, a campaign accused of targeting crypto companies by depriving them of banking services.

According to Marc Andreessen, more than 30 founders of tech and crypto startups have been debanked. A Chainalysis report reveals that 88% of crypto companies surveyed in 2025 faced difficulties accessing banking services. For Lummis, these accounts are a lifeline for a sector suffocated by traditional banks.

Crypto debanking: a scourge reignited by the JPMorgan vs Strike case?

On November 23, 2025, JPMorgan closed the accounts of Jack Mallers, CEO of Strike, without clear explanation. This event reignited the debate on crypto debanking, a practice that involves closing the bank accounts of companies deemed “at risk“, often without transparent justification. The consequences for crypto businesses are severe:

• Inability to receive or make payments;
• Disruption of daily operations;
• Loss of investor confidence. 

In 2025, 60% of crypto companies in the United States were affected by this phenomenon, according to the Blockchain Association. Facing this crisis, Donald TRUMP signed an executive order in August 2025 banning debanking without legal cause. The FDIC and the Fed are now under pressure to identify and sanction the responsible banks. Yet, debanking persists, highlighting the urgency of a structural solution.

Which cryptos and companies will be the first saved by the “skinny accounts” of the Fed?

Crypto payment companies like Strike, BitPay, and regulated exchanges such as Coinbase and Kraken are among the first potential beneficiaries of the “skinny master accounts” proposed by Cynthia Lummis. These accounts WOULD offer them stable access to banking services, reducing transaction costs and accelerating institutional adoption. Stablecoins like Circle’s USDC or Paxos’ USDP, as well as Web3 startups in fundraising phases, are also among the most affected by debanking.

For these crypto players, access to federal infrastructures could be a game-changer, strengthening their competitiveness against traditional banks. Finally, innovative projects in crypto fintech, particularly those working on cross-border payments, could also benefit from this measure. A step that could position the United States as a leader in financial innovation.

The “skinny master accounts ” could mark a turning point in the relationship between banks and the crypto industry. However, the success of the crypto debanking statement made by Trump will depend on political will and regulator cooperation. Yet, will this measure be enough to restore trust, or are deeper reforms needed to guarantee a stable future for crypto?

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