Congressman Rummis's focus on Chokehold 2.0 solutions, Fed's master account proposal

Last December, Senator Cynthia Lummis from Wyoming, a supporter of cryptocurrencies, actively expressed her support for the Federal Reserve’s innovative financial policies. Senator Lummis believed that the “Simplified Master Account” system proposed by Fed Governor Christopher Waller could fundamentally resolve the regulatory issues that have been troubling the cryptocurrency industry.

Why the Chokehold Policy Has Shackled Cryptocurrency Companies

The “Operation Chokehold” policy is a regulatory measure that has restricted cryptocurrency and fintech startups from accessing banking services over the past several years. As a result, cryptocurrency companies have been unable to properly utilize basic financial services such as fund transfers, payment processing, and operational fund management. This issue has hindered the overall development of the industry and made service innovation difficult.

How Waller’s Master Account Proposal Will Change Things

At the Payment Innovation Conference held last October, Waller proposed a new solution. The idea was to allow cryptocurrency companies, fintech startups, and even banks that only provide payment services to open accounts similar to a “Master Account” with the Federal Reserve. Of course, certain restrictions would apply, but this approach is seen as a significant improvement in addressing the financial exclusion caused by the chokehold policy.

Lummis’s Strong Support and Expectations

Senator Lummis evaluated the significance of this policy as follows: “Waller’s simplified master account system will put an end to Chokehold 2.0 and open the door to true payment innovation. Faster payments, lower costs, and higher security – this is how we responsibly build the future.”

This statement goes beyond mere policy support, embodying the belief that ensuring normal financial access for the cryptocurrency industry is key to economic development. If the master account system is implemented, cryptocurrency companies are expected to secure a more stable operational foundation.