US Fed Moves to End ‘Reputation Risk’ Rule Amid Crypto Debanking Concerns
The US Federal Reserve is moving to codify a rule that would eliminate "reputation risk" as a factor in banking supervision, a practice blamed for widespread crypto debanking. Announced on February 23, the proposal seeks public feedback for two months. Fed Vice Chair Michelle Bowman stated that supervisors have been improperly pressuring banks to close accounts based on customers' political views, religious beliefs, or involvement in lawful but disfavored businesses like crypto, calling such discrimination unlawful. Senator Lummis and industry figures praised the move, viewing it as ending "Operation Chokepoint 2.0," a term describing alleged government efforts to cut off crypto firms from banking services.
TheNewsCrypto02/24 06:00
