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US Federal Reserve Proposes Ban on Banks Using ’Reputational Risk’ to Exclude Crypto Clients
US Federal Reserve Proposes Ban on Banks Using ’Reputational Risk’ to Exclude Crypto Clients
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BTCCSquare news:
The US Federal Reserve has unveiled a proposed rule that WOULD bar banks from terminating relationships with legitimate businesses—including cryptocurrency and blockchain firms—based solely on subjective "reputational risk" assessments. Announced on February 23, 2026, the measure aims to curb politically motivated account closures and ensure equitable access to financial services for lawful industries.
Vice Chair for Supervision Michelle Bowman emphasized the need for objective criteria, citing reports of banks pressured to drop clients over non-financial factors. The rule mandates decisions based on concrete risk analysis rather than institutional biases, marking a potential turning point for crypto's integration into traditional finance.
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