The Fed has removed the “reputational risk” from bank reviews, which may help banks serve the crypto industry
PANews reported on June 24 that according to The Block, the Federal Reserve announced that it would remove "reputational risk" from bank review standards and instead use more specific financial risk indicators for assessment. This adjustment is intended to provide clearer guidelines for bank supervision and may also enable banks to better serve digital asset companies and other crypto industry participants, after the industry generally complained that "de-banking" has hindered the development of cryptocurrencies in the United States.
The Fed emphasized in a statement that this move does not change the basic requirements for bank risk management, but will provide clearer regulatory guidance. Wyoming Senator Cynthia Loomis called it a "phased victory" while pointing out that further policy improvements are still needed. The decision aligns the Fed's regulatory standards with those of the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC).
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Federal Reserve expected to slash rates today, here's how it may impact crypto
Market participants are eagerly anticipating at least a 25 basis point (BPS) interest rate cut from the Federal Reserve on Wednesday. The Federal Reserve, the central bank of the United States, is expected to begin slashing interest rates on Wednesday, with analysts expecting a 25 basis point (BPS) cut and a boost to risk asset prices in the long term.Crypto prices are strongly correlated with liquidity cycles, Coin Bureau founder and market analyst Nic Puckrin said. However, while lower interest rates tend to raise asset prices long-term, Puckrin warned of a short-term price correction. “The main risk is that the move is already priced in, Puckrin said, adding, “hope is high and there’s a big chance of a ‘sell the news’ pullback. When that happens, speculative corners, memecoins in particular, are most vulnerable.”Read more