Catenaa, Sunday, June 29, 2025- The US Federal Reserve announced Monday it will eliminate “reputational risk” from its bank examination criteria, a move hailed as a victory for digital asset firms battling widespread “debanking.”
The central bank will shift its supervision to focus on specific financial risks, aligning with similar actions by the OCC and FDIC.
The decision marks a pivotal regulatory shift as banks will no longer be evaluated on how their crypto affiliations might affect public perception. Critics have long argued that reputational scrutiny discouraged banks from maintaining relationships with crypto clients.
The practice intensified after the 2022 collapse of FTX, with crypto advocates dubbing the trend “Operation Chokepoint 2.0.”
In a letter, the Federal Reserve emphasized that banks are still expected to uphold strong risk controls, though the reputational factor will no longer drive supervisory judgments.
The move, officials said, clarifies oversight standards and promotes a more balanced approach to risk evaluation.
The policy shift comes amid accusations by President Donald Trump, who earlier claimed the Biden administration weaponized regulators to isolate crypto firms from the financial system.
Crypto industry leaders praised the announcement as a step toward restoring access to essential banking services for blockchain companies.
