The Federal Reserve’s proposed “skinny” master accounts are being positioned by Senator Cynthia Lummis as a structural response to what she calls Operation Chokepoint 2.0. Unveiled by Governor Christopher Waller in October 2025, the concept would give eligible nonbank payment providers direct but constrained access to Federal Reserve payment rails.
The design centers on a narrow master-account type that enables payment connectivity without extending full banking functionality. A “skinny” master account is described as a restricted Fed account for payment-focused entities that excludes interest-bearing deposits, credit facilities, and the broader service set available to chartered banks. The intent is to provide a predictable payments conduit while limiting the Federal Reserve’s exposure and legal complexity.
Governor Waller's skinny master account framework ends Operation Chokepoint 2.0 and opens the door to real payments innovation. Faster payments, lower costs, better security—this is how we build the future responsibly.
— Senator Cynthia Lummis (@SenLummis) December 27, 2025
How the proposal changes access dynamics for crypto firms
The proposal would reduce reliance on commercial-bank intermediaries that can deny or curtail service to crypto businesses for reputational or risk-aversion reasons. By creating an alternative route to settlement and payments, skinny accounts would neutralize discretionary leverage held by intermediaries over access to payment rails. For firms impacted by de-risking, the model is framed as a formal path to normalized payments access without requiring full bank charters or central bank credit.
Advocates, including Lummis, argue the framework could improve payments performance while keeping systemic risk contained. Supporters claim the accounts would enable faster transactions, lower fees, and stronger security for payment flows that integrate digital assets, while remaining explicitly limited to payments functionality. That constraint is central to the argument that innovation can be enabled without replicating commercial banking services.
Implications for treasuries, counterparties, and onboarding
Direct access to Fed payment rails could reduce settlement friction and dependence on correspondent relationships that introduce operational uncertainty. For crypto firms, the predictable access model is presented as a way to reduce the business risk of abrupt service withdrawals by commercial banks. The scrutiny would shift toward eligibility standards and operational safeguards at the central-bank access layer, rather than sitting primarily with commercial-bank due diligence decisions.
The proposal is also framed as part of a broader regulatory reset that could be reinforced by upcoming legislative activity. A related Crypto Market Structure Bill markup is expected in January 2026, and proponents argue skinny accounts would directly address prior debanking dynamics while aligning payment infrastructure with evolving fintech and digital-asset models. If implemented, the structure would reallocate where access decisions are made, with downstream implications for liquidity management, settlement risk, and institutional onboarding.