Senator Cynthia Lummis has voiced her support for the Federal Reserve's (Fed) proposed "skinny" master accounts, viewing them as a potential end to "Operation Chokepoint 2.0" and a catalyst for payments innovation. This proposal, championed by Fed Governor Christopher Waller, suggests offering crypto and fintech companies, including payment-only banks, access to Federal Reserve accounts, similar to the "master accounts" used by traditional banks, albeit with certain restrictions.

Operation Chokepoint 2.0 Explained

"Operation Chokepoint 2.0" is a term that describes a series of actions by U.S. government agencies aimed at limiting banking access for businesses and individuals linked to the digital asset industry. Critics argue that this initiative, like the original "Operation Chokepoint" that targeted industries disfavored by the Obama administration, stifles innovation and raises concerns about the government's role in regulating banking. Senator Lummis and others have accused federal agencies of employing "unofficial directives" to pressure banks into severing ties with crypto firms. Venture capitalist Marc Andreessen stated that over 30 tech founders were affected by debanking under this operation.

The Fed's Proposed Solution

Governor Waller introduced the idea of "payment accounts" at the Payments Innovation Conference in October 2025. These accounts, sometimes called "skinny master accounts," would allow fintechs and crypto companies to access Fed banking rails without full regulatory approvals. Waller stated that the new payment accounts would support innovation while maintaining payment system safety. While the idea is still experimental, it signals a growing effort toward the integration of fintech and crypto payment companies in the traditional finance system. The payment account feature is expected to become operational in the fourth quarter of 2026. The Fed will review public feedback before finalizing the framework and approval criteria for payment account access. A public comment period was launched and will close 45 days after Federal Register publication.

Lummis's Stance and the Broader Implications

Senator Lummis praised Waller's framework, emphasizing the potential for faster payments, reduced costs, and enhanced security as essential components for building the future of finance responsibly. She has been a vocal critic of "Operation Chokepoint 2.0," arguing that it damages public trust in traditional banks and pushes digital asset activity outside the country. In February 2025, Lummis demanded documents from the Federal Reserve Board of Governors and the Federal Reserve Banks of Dallas and Richmond regarding Operation Chokepoint 2.0 and digital assets.

The potential end of "Operation Chokepoint 2.0" and the introduction of "skinny" master accounts could mark a significant shift in the regulatory landscape for crypto and fintech innovation. By adopting a "different risks, different regulation" framework, the Fed may be creating a more favorable environment for state banks and fintech partners to explore novel financial products. This policy pivot, coupled with broader regulatory clarity under the Trump administration, signals a strategic embrace of innovation while maintaining safeguards.