Fed Drops ‘Reputational Risk’ Rule: a Big Win for Crypto Banking Access

The Federal Reserve has eliminated "reputational risk" from its bank supervision framework, removing a significant barrier for crypto firms seeking banking services. This policy shift aligns the Fed with other regulators like the FDIC and OCC, who had already abandoned the subjective reputation metric.

Banks can now evaluate crypto partnerships based on concrete financial risks—liquidity, creditworthiness, and legal exposure—rather than perceived image concerns. The change effectively ends years of unofficial debanking that stifled industry growth under vague compliance standards.

Immediate implications include streamlined access to banking infrastructure for digital asset firms and reduced regulatory uncertainty for institutions exploring stablecoin services. Market participants interpret this as a quiet endorsement of crypto's maturation into mainstream finance.