The US Federal Reserve said it commissioned its supervisors not to consider the “reputation risk” in its administration of banks, which has long been argued by the crypto industry has been used to unfair the target and debank crypto firms.
Industries that are considered dangerous faces of important challenges in establishing or maintaining banking relationships, and it is seen to be driving in the so -called Operation Chokepoint 2.0 When more than 30 crypto technologies and companies Banking services declined In the US.
In a statement on Monday, the Federal Reserve Board Says It begins the review and removal of references to the reputation and risk of reputation from administration materials and replacing them with more “specific discussions” around the financial risk.
At the same time, the Board plans to train the reviewers and ensure that the change is continuously implemented on the banks under its supervision, while also working with other federal regulatory agencies to promote consistent skills.
Banks will still need risk management skills
Despite the change, the Federal Reserve Board said it is still expected that banks will maintain strong risk management compliance with all laws and regulations.
The change is also not “intended to be affected if and how banks use the board to support the concept of reputation risk in their own risk management skills.”
The Federal Reserve Defined reputation risk As the potential negative publicity about the business skills of an institution, whether true or not, will cause a downfall at the customer’s base, costly litigation, or income reductions.
A boon for crypto and banking
US Senator Cynthia Lummis Says The aggressive risk rules of reputation are “killed American bitcoin & digital assets,” adding that “this is a win, but there is still more work to do.”
Rob Nichols, president and CEO of the banking lobby group the American Bankers Association, also Pinalakppap The decision in a statement, which states, “Change will make the administration more clear and more clear.”
“We have long believed that banks should make business decisions based on neat risk management and the free market, not the individual regulators’ views,” he added.
However, critics Says Removal of the reputation risk can diminish non -financial issues, impact of bank stability, weakening management and potential fuel bank skills.
Crypto regulators regulators
Other regulators and oversight bodies in the US began to spin -round Crypto -related restrictions This year too.
Related: SEC Crypto Staking Guide ‘Main Step forward’ for us: Crypto Council
The US Comptroller’s US office confirmed in May Banks under its scope can trade crypto On behalf of customers and outsource some crypto activities at third parties.
The US Federal Deposit Insurance Corporation, an independent federal government agency, also said in a letter of march that institutions under its supervisionIncluding banks, can now engage in crypto-associated activities without preliminary approval.
Magazine: SEC U-Turn to Crypto leaves key questions that are not answered
