Access to Federal Reserve accounts for cryptocurrency and fintech startups is anticipated to enhance payment systems and mitigate issues related to debanking. This initiative, proposed by Federal Reserve Governor Christopher Waller during the Payments Innovation Conference in October, aims to provide “skinny” master accounts to these companies, which have faced challenges under Operation Chokepoint 2.0.
Senator Cynthia Lummis expressed that this framework would not only conclude Operation Chokepoint 2.0 but also foster innovation in payment processing by offering faster transactions and reduced costs. The operation previously sought to limit banking services for over 30 tech founders, according to venture capitalist Marc Andreessen.
Despite an executive order from former President Donald Trump in August aimed at curbing debanking practices, many in the crypto sector have reported ongoing issues. The order mandated banking regulators to scrutinize institutions involved in unjustly denying services to clients, yet cases like that of Jack Mallers, CEO of Strike, demonstrate the persistence of these challenges.