The Federal Reserve has opened a public comment period to propose permanently removing "reputational risk" considerations from bank regulation, formally establishing the policy adjustment made in June last year in response to concerns about "debanking" faced by legitimate businesses such as the crypto industry. The Federal Reserve stated that regulatory decisions should be based on substantive financial risks and not penalize banks for serving customers in lawful sensitive industries due to political views, religious beliefs, or other reasons. Vice Chair Michelle W. Bowman emphasized that such discrimination based on reputational risk does not fall within the Federal Reserve's regulatory framework. Senator Cynthia Lummis welcomed the move, believing it will help position the U.S. as a center for digital assets. The comment period will last 60 days after the publication in the Federal Register. (The Block)