Fed Drops ‘Reputational Risk’ Standard, Easing Path for Crypto Banking

The Federal Reserve has officially joined the FDIC and the OCC in removing “reputational risk” from the list of factors used to assess whether banks can do business with certain industries. This quiet but significant update could change how banks engage with the crypto world. For years, crypto companies in the United States have faced.. The post Fed Drops ‘Reputational Risk’ Standard, Easing Path for Crypto Banking appeared first on 99Bitcoins.

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Jun 24, 2025 - 10:00

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Fed Drops ‘Reputational Risk’ Standard, Easing Path for Crypto Banking

The Federal Reserve has officially joined the FDIC and the OCC in removing “reputational risk” from the list of factors used to assess whether banks can do business with certain industries. This quiet but significant update could change how banks engage with the crypto world.

For years, crypto companies in the United States have faced a frustrating problem. Even when fully legal and compliant, many found themselves locked out of traditional banking. The issue wasn’t fraud or instability. It was image. Banks were worried that working with crypto firms would hurt their reputation. That kind of risk, often vague and hard to define, could trigger extra scrutiny during exams. It discouraged banks from touching anything remotely controversial.

That barrier just got a lot lower.

Why This Decision Matters Now

The concept of reputational risk was never clearly defined. It gave regulators broad discretion to flag a bank for doing business with companies that were legal but unpopular in some circles. Crypto firms have long felt the pressure from this. Some have been dropped by their banks without explanation. Others never got access in the first place.