The US Federal Reserve has instructed its supervisors to stop factoring in 'reputational risk' when overseeing banks, a move welcomed by the crypto sector, which has long claimed this criterion unfairly targeted crypto firms. This shift comes in light of 'Operation Chokepoint 2.0,' where over 30 tech and crypto companies were denied banking services. The Federal Reserve Board announced it is reviewing its supervisory materials to replace references to reputational risk with more precise discussions on financial risk. They will also train examiners to ensure consistent implementation across banks. Despite this change, the Board expects banks to uphold robust risk management practices in compliance with laws. Critics argue that removing reputational risk could obscure important non-financial issues and weaken oversight. Meanwhile, other US regulatory bodies have begun easing restrictions on crypto activities, allowing banks to engage in crypto trading and related services without prior approval. Read more AI-generated news on: https://app.chaingpt.org/news