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).