Wyoming Senator Cynthia Lummis, a pro-crypto US congresswoman, said Federal Reserve Governor Christopher Waller’s recent proposal to give crypto companies access to “skinny” master accounts would end bank withdrawal under Operation Chokepoint 2.0.
Waller propose the idea at the Payments Innovation Conference in October, enabling crypto and fintech startups, including payments-only banks, access to Federal Reserve accounts similar to “master accounts” used by banks, but with restrictions. Lummis said:
“Governor Waller’s Lean Master Account Framework ends Operation Chokepoint 2.0 and opens the door to true payments innovation. Faster payments, lower costs, better security – this is how we responsibly build the future.”
Operation Chokepoint 2.0 has been described as a coordinated effort to deny banking services to crypto companies and their founders. More than 30 technology founders were debanked as part of the operation, according to to venture capitalist Marc Andreessen.
Waller’s proposal highlights the regulatory change in the United Stateswith officials and lawmakers now embracing cryptocurrencies and other new fintech startups as necessary upgrades to the payments system and the future of finance.
Related: Fed asks for information on what type of account is attractive to crypto companies
Operation Chokepoint 2.0 Never Ended, Crypto Industry Executives Say
US President Donald Trump signed an executive order in August prohibit banks from unbanking Americans and businesses without legitimate reason.
The order also directed U.S. banking regulators, including the Federal Deposit Insurance Corporation (FDIC), to identify banks and financial institutions that have engaged in debanking and potentially sanction those institutions with fines or other punitive measures.
However, crypto executives, project founders and Web3 companies continued to report problems with debanking despite the Trump administration’s pro-crypto order and stance.
In November, Bitcoin CEO Jack Mallers (BTC) payment company Strike, said he was debanked by the financial services company JPMorgan without explanation.
“Every time I asked them why, they said the same thing: ‘We’re not allowed to tell you,'” Mallers said in another X. job.
JP Morgan Chase also frozen bank accounts stable startups BlindPay and Kontigo in December, citing these companies’ alleged exposure to sanctioned jurisdictions as the reason.
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