Grafa logo

Lummis backs Fed “skinny accounts” to tackle crypto debanking

Written by Isaac FrancisPublished Dec. 29 2025Last Updated Dec. 29 2025

Share

US Senator Cynthia Lummis has endorsed the Federal Reserve’s proposed “skinny master accounts” as a remedy for crypto debanking.

The proposal aims to give crypto firms limited but direct access to federal payment infrastructure.

Lummis said the measure could shield digital asset companies from arbitrary account closures.

Debanking has intensified in recent years, affecting dozens of crypto founders and firms.

The issue resurfaced after JPMorgan closed accounts linked to Strike chief executive Jack Mallers in November 2025.

The closure reignited concerns over banks denying services without transparent justification.

Lummis said skinny accounts could help end what critics call Operation Chokepoint 2.0.

Federal Reserve Governor Christopher Waller originally outlined the skinny account framework.

The accounts would provide payment access without full banking privileges.

Marc Andreessen has said more than 30 crypto and tech founders have been debanked.

A Chainalysis survey found 88% of crypto firms faced banking access issues in 2025.

Lummis described the accounts as a lifeline for an industry under pressure.

Debanking has disrupted payrolls, payments and investor confidence across the sector.

The Blockchain Association said 60% of US crypto firms were affected in 2025.

President Donald Trump signed an executive order banning debanking without legal cause.

Regulators including the Fed and FDIC remain under pressure to enforce the order.

Lummis said skinny accounts could reduce transaction costs for crypto businesses.

She argued the measure would accelerate innovation and institutional adoption.

Crypto payment firms such as Strike and BitPay could benefit first.

Regulated exchanges including Coinbase and Kraken are also potential beneficiaries.

Web3 startups raising capital face some of the highest debanking risks.

Access to federal rails could improve competitiveness against traditional banks.

Lummis said the proposal could strengthen US leadership in financial innovation.

This is about fairness and access to infrastructure.

Cynthia Lummis said.

Critics argue skinny accounts may not fully restore trust between banks and crypto.

Supporters say the policy represents a meaningful structural reform.

The debate now centres on regulatory cooperation and political will.