Federal Reserve Dumps Reputational Risk Rule—Crypto Banks Just Got Their Golden Ticket

The Fed just bulldozed a major regulatory barrier—and crypto banks are rushing in.

Goodbye red tape, hello digital dollars

The Federal Reserve quietly axed its controversial 'reputational risk' rule this week, a move that effectively rolls out the welcome mat for crypto-native banks. No more sidelining institutions for daring to dabble in blockchain.

Wall Street’s loss, crypto’s gain

Traditional banks spent years lobbying against the rule—only for crypto firms to benefit from its demise. The irony? Priceless. Now, compliant crypto banks can finally access master accounts and payment systems without fear of being blacklisted for 'association risk.'

The fine print

Don’t break out the champagne yet. The Fed’s still watching for actual fraud—they just stopped judging banks by their clientele’s Twitter feeds. Progress? In Washington? Must be an election year.

One regulator’s 'reputational risk' is another’s innovation stifler. Today, the stifler lost.

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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.