Fed’s ‘skinny’ accounts end Operation Chokepoint 2.0 — Senator Lummis

Cynthia Lummis says the Fed’s proposed “skinny” accounts for crypto firms could curb debanking and bring an end to Operation Chokepoint 2.0.

Wyoming Senator Cynthia Lummis said a proposal from Federal Reserve Governor Christopher Waller to grant crypto firms access to so-called “skinny” master accounts could curb debanking and bring an end to what the industry has labeled “Operation Chokepoint 2.0.”

Waller proposed the idea at the Payments Innovation Conference in October, allowing crypto and fintech startups, including payment-only banks, access to accounts at the Federal Reserve similar to the “master accounts” used by banks, but with restrictions. Lummis said:

Operation Chokepoint 2.0 was described as a coordinated effort to deny banking services to crypto companies and their founders. More than 30 tech founders were debanked under the operation, according to venture capitalist Marc Andreessen.

Read more