🔥🔥The Fed Removes the ‘Reputational Risk’ Rule: a Major Victory for Access to Crypto Banking 🔥🔥
On Monday, June 30, 2025, the Federal Reserve (Fed) announced the removal of “reputational risk” as a criterion for bank supervision, which was previously used to discourage banks from working with cryptocurrency companies, leading to the “de-banking” of the sector. Now, the Fed will focus on concrete financial risks, such as liquidity, credit, and legal exposure, aligning with other regulators like the FDIC and OCC.
Banks will no longer need to notify the Fed in advance to engage with crypto or stablecoins, treating these activities as standard operations.
The change may facilitate access for crypto companies to banking services, especially following the collapse of banks like Silvergate and Signature in 2023.
The decision was celebrated by figures like Senator Cynthia Lummis and Michael Saylor, who see greater openness for banks to support the sector, including Bitcoin.
