Fed's 'Skinny' Accounts Offer Lifeline to Crypto Firms - Lummis

Fed's 'Skinny' Accounts Offer Lifeline to Crypto Firms

Senator Cynthia Lummis announced that the Federal Reserve's introduction of 'skinny' accounts will end Operation Chokepoint 2.0, providing a critical lifeline to crypto companies and fintech startups.

The Announcement/Development

The Federal Reserve has launched 'skinny' accounts, which allow crypto firms direct access to the Fed's payment systems. This move aims to counteract the debanking practices of commercial banks. The rollout of these accounts began on December 15, 2025, with a phased approach expected to be fully implemented by March 2026. The initiative was spearheaded by a team led by Fed Governor Michelle Bowman.

Why This Matters

The introduction of 'skinny' accounts addresses the issue of debanking, where commercial banks have been closing accounts of crypto-related businesses. This provides a competitive advantage to crypto firms by ensuring they have reliable access to financial services. The market opportunity for these accounts is significant, with over 1,000 crypto companies potentially benefiting. Users and developers will see enhanced stability and trust in the crypto ecosystem.

Market Response and Outlook

Following the announcement, Bitcoin's price increased by 2.3% to $65,432, reflecting positive market sentiment CoinGecko. The crypto community and developers have responded favorably, with many praising the move on social media platforms. Upcoming milestones include the full implementation of the 'skinny' accounts by March 2026 and potential integration with other financial systems. This development is expected to enhance the broader financial ecosystem by fostering greater inclusion of crypto businesses Governance News.