The Federal Reserve plans to permanently remove reputation risk regulatory requirements, which may alleviate the de-banking dilemma faced by crypto companies

2026-02-24 10:31:12

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Mars Finance reports that according to The Block, the Federal Reserve recently announced a proposal to permanently remove reputation risk considerations from the banking regulatory framework and has opened a 60-day public comment period. The proposal aims to ensure that banking regulatory decisions are based solely on substantive financial risks and to prevent banks from refusing services due to clients’ political views, religious beliefs, or engagement in legal but sensitive industries. Federal Reserve Vice Chair for Supervision Michelle W. Bowman stated that she has heard of multiple cases of de-banking, and such discriminatory behavior should not exist within the Federal Reserve’s regulatory framework. Senator Cynthia Lummis welcomed the proposal, saying it will help make the U.S. a global center for digital assets.

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