The US Federal Reserve has directed supervisors to stop using “reputational risk” in bank oversight, a practice crypto firms argued unfairly led to denied banking services under “Operation Chokepoint 2.0.” While banks still need strong risk management, this change aims for more transparent and consistent supervision, a move applauded by Senator Cynthia Lummis and banking groups as a win for the crypto industry.
Fed Curbs ‘Reputational Risk’ Scrutiny on Banks, Aids Crypto Firms
