'Thin' Fed accounts: the proposal to end banking exclusion in the crypto sector

Limited bank access has been one of the biggest obstacles to the development of the cryptocurrency industry. Sector companies face systematic rejections from traditional financial institutions, making their operations and growth difficult. In this context, Senator Cynthia Lummis has introduced an innovative proposal that could transform this reality.

The senator suggests that the Federal Reserve implement “thin” accounts or essential banking services accounts, specifically designed to provide basic yet functional financial solutions. These accounts would represent a middle ground between strict regulatory requirements and the operational need for crypto companies to access the conventional banking system.

How the financial inclusion model would work

The proposed thin accounts would offer fundamental services such as deposits, transfers, and payments without the complexity of advanced financial products. This simplified architecture would allow traditional institutions to evaluate and manage risk more clearly. In this way, the regulatory barriers that currently shut the doors of the financial system to crypto actors could gradually disappear.

Integration of the crypto ecosystem into the financial infrastructure

Lummis’s proposal goes beyond solving immediate access problems. It aims to structurally integrate cryptocurrencies into the broader financial system, eliminating the current isolation faced by the sector. Analytical platforms and tools like debank could benefit from this greater connection with traditional banking infrastructure, improving market transparency and confidence.

Ongoing efforts in Washington to address regulatory hurdles demonstrate a paradigm shift. Although slow, the move toward practical solutions like thin accounts shows that financial inclusion of the crypto sector is possible with regulatory creativity.