Senator Lummis Applauds Fed’s Proposal to End Operation Chokepoint 2.0 for Crypto

Federal regulators might finally be stepping off the industry's throat.

The Federal Reserve's latest proposal signals a potential end to what critics call 'Operation Chokepoint 2.0'—a regulatory squeeze that's been starving crypto firms of essential banking services. Senator Cynthia Lummis, a longtime crypto advocate, is leading the applause from Capitol Hill.

From Chokehold to Handshake

For years, crypto companies have navigated a banking desert. Traditional institutions, wary of regulatory backlash, often slammed their doors—cutting off access to payment rails, custody services, and basic accounts. The Fed's new guidance aims to clarify the rules, telling banks they can serve crypto clients if they manage the risks. It's a shift from blanket suspicion to measured engagement.

Why This Move Matters Now

The timing isn't random. With clear legislative frameworks like the Lummis-Gillibrand bill stalled, regulators are taking incremental steps to prevent the entire industry from moving offshore. The proposal acknowledges a simple truth: you can't foster innovation while simultaneously cutting off its financial oxygen. It's a pragmatic move, albeit one that comes after years of needless friction—typical bureaucratic speed, always a few bull markets behind the curve.

The Fine Print and the Fight Ahead

Don't break out the champagne just yet. The proposal is just that—a proposal. It now faces a comment period and potential pushback from anti-crypto factions within other agencies. Banks will also need to build robust compliance programs, which takes time and money. The path from 'allowed' to 'actually banking' remains fraught with legacy risk aversion.

Still, it's a definitive crack in the wall. For an industry accustomed to operating in the shadows of the traditional financial system, a little sunlight—and a working bank account—feels like a revolution.

TLDR

• Fed Governor Waller’s “skinny” accounts aim to help crypto and fintech startups access Federal Reserve services.
• Lummis claims the plan will end debanking practices seen under Operation Chokepoint 2.0.
• Despite Trump’s 2018 executive order, crypto startups still face debanking issues with major banks.
• JPMorgan has faced criticism for debanking crypto firms like Strike and freezing accounts without clear explanation.

Wyoming Senator Cynthia Lummis has expressed strong support for the Federal Reserve’s proposal to provide crypto and fintech startups with access to “skinny” master accounts. This move, championed by Fed Governor Christopher Waller, aims to end the controversial Operation Chokepoint 2.0, which has seen numerous crypto companies and founders denied banking services. Lummis believes this plan will foster innovation and reduce the debanking issues that continue to affect the industry.

Fed’s “Skinny” Accounts Plan Targets Crypto Industry Debanking

Wyoming Senator Cynthia Lummis has praised a new proposal by Federal Reserve Governor Christopher Waller that seeks to provide crypto and fintech companies with access to restricted “skinny” master accounts. This MOVE is seen as a way to address ongoing concerns about debanking practices, particularly those tied to Operation Chokepoint 2.0.

The proposal, which was introduced during the Payments Innovation Conference in October, is viewed as a step toward fostering innovation in the payments industry, including the integration of cryptocurrencies into mainstream financial systems.

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.

— Senator Cynthia Lummis (@SenLummis) December 27, 2025

Lummis has long been an advocate for cryptocurrency, and her support for the proposal highlights the growing regulatory shift in the United States towards embracing fintech and crypto startups. She stated that Waller’s plan WOULD help resolve ongoing issues faced by crypto companies that have struggled to access banking services. Lummis believes this framework could create a more secure, efficient, and faster payments system for the future of finance.

Operation Chokepoint 2.0 and Its Impact on Crypto Firms

Operation Chokepoint 2.0 refers to a coordinated effort by certain financial institutions to limit or entirely cut off banking services to crypto-related businesses. The initiative, although not officially labeled as such, has been reported to target companies within the digital assets sector, causing numerous crypto founders to lose access to essential banking services. According to venture capitalist Marc Andreessen, more than 30 tech entrepreneurs have been affected by these practices, which he argues stifled the growth of the sector.

Despite a 2018 executive order by President Donald TRUMP prohibiting financial institutions from denying services to customers without lawful justification, reports continue to surface that crypto firms are still facing debanking challenges.

Cynthia Lummis says the Fed’s move away from Operation Chokepoint 2.0 could reopen the door to real payments innovation, faster, cheaper, and more secure systems.

"These new payment accounts would support innovation while keeping the payments system safe" – Governor Waller pic.twitter.com/LyAv2EbSg1

— TFTC (@TFTC21) December 27, 2025

Lummis has been vocal about these issues, especially given the ongoing struggles faced by businesses like Strike, a Bitcoin payment company led by Jack Mallers. Mallers revealed that JPMorgan had frozen his accounts without explanation, despite the executive order in place. This has led to growing concerns that even with government action, crypto firms are still vulnerable to discriminatory banking practices.

“Skinny” Accounts as a Solution

Waller’s proposal to introduce “skinny” master accounts for crypto firms is seen as a potential solution to the debanking issue. These accounts would grant crypto and fintech startups access to the Federal Reserve’s payment system but with certain restrictions.

The “skinny” accounts would allow these companies to access the Federal Reserve’s payment infrastructure without the full access granted to traditional banks. Lummis has praised this concept, stating that it could facilitate faster payments, lower transaction costs, and increase security.

How 'Skinny' Fed Accounts Protect Crypto Users from Debanking — Lummis

Introduction U.S. lawmakers and industry insiders are witnessing a potential shift in how the federal banking system interacts with cryptocurrency firms. A recent proposal from Fed……

— Crypto Breaking News (@CryptoBreakNews) December 27, 2025

By allowing startups and fintech companies to use these accounts, the Federal Reserve would reduce the dependence on commercial banks, which have been accused of engaging in discriminatory banking practices against the crypto industry. Lummis emphasized that this would promote financial innovation, ensuring that new technologies can develop without facing systemic hurdles imposed by traditional financial institutions.

Continued Challenges for Crypto Companies

Despite the promise of “skinny” accounts, some challenges remain. Notably, even with the executive order signed by Trump, crypto companies continue to report difficulties in accessing banking services. In December, JPMorgan Chase froze the accounts of stablecoin startups BlindPay and Kontigo, citing concerns over their alleged exposure to sanctioned jurisdictions. These incidents suggest that while regulatory changes are underway, crypto businesses are still facing significant barriers when trying to work with traditional banks.

Operation Chokepoint 2.0 regrettably lives on.

Policies like JP Morgan’s undermine confidence in traditional banks and send the digital asset industry overseas.

It’s past time we put Operation Chokepoint 2.0 to rest to make America the digital asset capital of the world. pic.twitter.com/x9ZdgXialV

— Senator Cynthia Lummis (@SenLummis) November 24, 2025

While Waller’s proposal represents a promising shift towards regulatory acceptance of fintech and crypto innovation, the full impact of these changes remains to be seen. For now, it appears that the road to a more inclusive and open financial system for crypto companies is still under development.